Crude Oil: Sourcing, Types, and Buyer's Guide for 2025
As global demand for energy continues to rise, crude oil remains a critical raw material in the chemicals industry. Whether you're a refinery operator or a trading company, understanding how to source quality crude oil efficiently is vital for your business success.
How to Find Reliable Crude Oil from China in 2025
China has emerged as a major player in the crude oil market, offering competitive pricing and diverse options. To identify trustworthy suppliers:
- Verify certifications like ISO 29001 for petroleum quality management
- Check supplier track records on platforms like Alibaba with 5+ years of trading history
- Request recent lab analysis reports (API gravity, sulfur content)
- Confirm logistics capabilities for large-volume shipments
Top production hubs include Shandong (38% of China's capacity) and Guangdong provinces, where major refineries operate with 10-20 million ton annual outputs.
What Buyers Should Know Before Buying Crude Oil from China
Key considerations when importing:
| Factor | Details |
|---|---|
| Customs Duties | 5-8% for most countries, plus VAT |
| Payment Terms | 30% deposit common, LC preferred |
| Shipping | VLCC tankers (2 million barrel capacity) |
| Quality Variance | ±0.5% sulfur content tolerance typical |
Types of Crude Oil
Major classifications:
By API Gravity
- Light (API >31.1): Easier refining, higher gasoline yield
- Medium (API 22.3-31.1): Balanced properties
- Heavy (API <22.3): Requires specialized processing
By Sulfur Content
- Sweet (<0.5% sulfur): Lower processing costs
- Sour (>0.5% sulfur): Needs desulfurization
Functions and Features of Crude Oil
Primary characteristics that determine value:
- Energy Density: 35-45 MJ/kg heat content
- Distillation Yield: Determines product mix (gasoline, diesel, etc.)
- Compatibility: Some blends require specific refinery configurations
Scenarios of Crude Oil
Typical applications:
- Transportation Fuels: 70% of refined output
- Petrochemicals: Feedstock for plastics, synthetics
- Industrial: Lubricants, waxes, asphalt
How to Choose Crude Oil
Selection matrix:
| Refinery Type | Recommended Crude |
|---|---|
| Simple | Light sweet (Brent equivalent) |
| Complex | Heavy sour (can process cheaper grades) |
| Integrated | Mixed slate for optimal yield |
Crude Oil Q & A
Q: What's the minimum order quantity for Chinese crude?
A: Typically 500,000 barrels for direct shipments, though traders may offer smaller lots.
Q: How do I verify crude quality before shipment?
A: Third-party inspection like SGS or Bureau Veritas during loading is standard practice.
Q: Are there seasonal price fluctuations?
A: Yes, winter demand peaks can increase prices by 8-12% for heating oils.
Q: What Incoterms work best for crude purchases?
A: CIF is most common for first-time buyers; experienced traders often use FOB.
Q: How long does shipping from China take?
A: 25-40 days to most global ports depending on route and tanker availability.
