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Home Latest Energy News By Irina Slav - Nov 12, 2026, 2:30 AM CST Asian energy commodity buyers are increasingly turning to African and Brazilian grades, attracted by lower prices as rates for shipping oil out of the Persian Gulf remain near historic highs. Freight rates were at record levels for South American and African cargoes earlier this year, but have now declined enough to entice Asian buyers, Reuters noted in a report, citing unnamed sources including traders, shipbrokers, and analysts. The sources listed China’s Sinopec as one of these buyers along with South Korean SK Energy.
Both companies bought West African crude cargoes recently. Sinopec’s trading arm Unipec bought two cargoes of Djeno crude from Congo, at a discount of some $22 to dated Brent, two unnamed traders told Reuters. SK Energy, for its part, provisionally chartered a Suezmax tanker to transport crude from Gabon to the South Korean port of Ulsan in December.
Angolan crude is also looking attractive to Chinese buyers as Russian ESPO trades at a rising premium, according to analysts from Energy Aspects. “Softer long-haul VLCC freight rates are making west of Suez grades more attractive,” Energy Aspects analysts wrote in a recent note, as quoted by Reuters. Freight rates declined after hitting all-time highs last month, as buyers retreated.
As a result, freight rates for very large crude carriers have sunk by 50% from October highs, and Suezmax and Aframax rates have also dropped sharply. “The recent freight correction has been driven by improving vessel availability following October’s exceptional market tightness,” Vortexa shipping analyst Wanying Zhang said, as quoted by Reuters. “The number of laden mainstream VLCCs and Suezmaxes in East Asia has increased by approximately 15% since early September, suggesting a growing pool of vessels that could become available as they complete discharge operations.” Tanker rates soared this year due to Middle Eastern producers taking to ship-to-ship transfers outside the Strait of Hormuz.
For this, they use shuttle tankers, including smaller carriers, to sneak the oil through Hormuz and then load it on supertankers in the Gulf of Oman. As a result, supertanker rates from the Gulf to Asia hit $1.4 million daily in October before retreating. By Irina Slav for Oilprice.com More Top Reads From Oilprice.com Saudi Crude Output Jumps 26% as Riyadh Reports Near Pre-War Production Vitol’s Venezuela Oil Windfall Traced to Trader’s Ties to JD Vance Crude Is Back at 80% in the Gulf, but Refined Products Are Stuck at 35% Join the discussion | Back to homepage Irina Slav What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the...
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