Asian Refiners Turn to Argentina as Iran War Disrupts Oil Supply

Asian crude oil importers, including China, Japan, and South Korea, are increasingly turning to Argentina for oil as the Iran war disrupts supply from the Middle East, according to traders familiar with the purchases, Bloomberg reported on Monday. Before the conflict, Asian refiners had relied heavily on Middle East oil for their term supplies.

However, they are now seeking alternative barrels that do not need to pass through the Strait of Hormuz or other volatile regions, or take longer routes through the Red Sea, Mediterranean, and Cape of Good Hope. Argentina has emerged as a viable option, with some Asian refiners purchasing cargoes of Medanito crude. This oil, produced in the Vaca Muerta shale basin, has been on the rise in recent years.

In 2025, Argentina's oil sales to Asia surpassed pre-pandemic levels, marking its first exports since 2024, according to Argentinian government data. Medanito's popularity in Asia has grown due to its proximity to the U.S. West Texas Intermediate (WTI) in terms of quality and its lower price, currently trading at a $1-$2 discount per barrel compared to WTI.

Other South American nations like Brazil and Venezuela have also caught the attention of Asian refiners, who aim to reduce their dependence on Middle East oil.