Chinese refiners prefer Middle East discounts… tanker freight at $35.60 per barrel

Middle East-to-China VLCC crude freight rates stood at $35.60 per barrel on November 6, down from a peak of $36.97 on October 30, according to Kpler, as discounted Saudi and Iraqi crude drew Chinese refiners toward Middle Eastern supply. Kpler attributed the elevated rate level to war-risk premiums in the Middle East and limited vessel availability, noting the pullback does not signal that shipping risks have eased. The shift matters because refiners' procurement costs reflect freight, insurance, transshipment terms and delivery timing alongside the crude purchase price, so the discount on Middle Eastern grades alone does not determine final costs. Watch whether war-risk premiums and tight tanker supply keep rates near these levels, and whether Chinese buyers keep favoring discounted Gulf barrels.