China’s refiners, all but cut off from Venezuelan crude in the past week as the US positions itself for access to the world’s largest oil reserves, are eying a pricier alternative source—Canada.
Chinese inquiries around Canadian supply have increased since the snatching of President Nicolas Maduro at the weekend, traders said, with processors considering the country’s grades seen as among the best replacements for Venezuela’s Merey crude.
The traders did not specify which firms had been among the first movers, but said regular buyers of Venezuela crude—including Shandong Chambroad Petrochemicals, Shandong Dongming Petroleum & Chemical and Sinochem Hongrun Petrochemical—would need to find new supplies.>
