Yanchang Petroleum International Ltd

Asian refineries have significantly increased their purchases of crude oil from Argentina, following the impact of the Iran war on Middle East supply. According to Argentine government data, crude exports to Asia have surged to a record average high of 35,000 barrels per day this year, more than five times the average in 2025. Refineries in Japan, South Korea, and China have bought Argentina's Medanito crude, with Japan being a new buyer through Eneos Holdings and Taiyo Oil, while South Korea's Hyundai Oilbank, as well as China's PetroChina and Shaanxi Yanchang Petroleum, are also major buyers. Medanito crude has properties similar to WTI but is $1-2 per barrel cheaper, and its shipping route does not pass through the Panama Canal or the Suez Canal, an advantage during Middle East uncertainty. However, Argentina still faces infrastructure constraints, as current ports can only accommodate Aframax-sized vessels, but the Vaca Muerta Oil Sur project, set to start operations next year, will boost future export capacity.