After several quiet months due to trade tensions between the two countries, Chinese state oil giant Sinopec has secured purchases, with deliveries possibly arriving in May. A VLCC will be loaded with US crude by late March. Two Sinopec refineries will each receive approximately 130K mt(953K bbl)of crude: the 5MM-mt/y(lOOK-b/d)Dongxing and the 9.2MM-mt/y(185K-b/d)Hainan. The Anging and Wuhan refineries-each with a capacity of 8MM mt/y(161K b/d)-are expected to receive US crude some time in May or June. These purchases are being looked to as a sign of goodwill ahead of the trade talks expected to take place in late March or April between the two countries. In addition to the cooling of tensions, US benchmark WTI has been trading at around $10/bbl lower than Middle Eastern benchmark Dubai, making grades priced against Dubai less attractive than US crudes.
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