Archive · 31 Aug 2026
Asian Refiners Turn to Argentine Oil Amid Iran War
Asian oil companies are buying more crude oil from Argentina.
They are doing this because the Iran war has made Middle Eastern oil supplies harder to obtain.
The oil is called Medanito and comes from Argentina’s Vaca Muerta shale region.
It is similar to a type of American oil called West Texas Intermediate.
Medanito is also slightly cheaper than similar American oil.
Ships carrying it do not need to pass through the Panama or Suez canals.
Argentina still sends only a small amount of oil to Asia compared with larger oil-producing countries.
A planned pipeline and shipping terminal could help Argentina send more oil in the future.
Refiners in Japan, South Korea and China have bought Argentina’s Medanito crude as the Iran war disrupts Middle East supplies.
Eneos Holdings, Taiyo Oil, Hyundai Oilbank, PetroChina and Shaanxi Yanchang Petroleum were identified among the buyers.
Argentina’s exports to Asia averaged a record 35,000 barrels per day through July, more than five times the 2025 average.
Medanito is comparable to West Texas Intermediate, sells at an estimated $1-$2-per-barrel discount and avoids major shipping chokepoints.
Argentina’s seaborne exports are limited by ports that can load Aframax vessels, though the Vaca Muerta Oil Sur project is expected to expand capacity next year.
- Who
- Refiners in Japan, South Korea and China, including Eneos Holdings, Taiyo Oil, Hyundai Oilbank, PetroChina and Shaanxi Yanchang Petroleum, are buying oil from Argentina.
- What
- Asian refiners are increasing purchases of Argentina’s Medanito crude as Middle Eastern supply is disrupted.
- When
- Purchases occurred in recent weeks, with cargo loading dates scheduled from August through October; export data cited runs through July.
- Where
- Medanito is produced in Argentina’s Vaca Muerta shale formation and shipped around South America’s southern tip across the Pacific to Asia.
- Why
- Refiners are diversifying supplies and strengthening energy security amid disrupted Middle Eastern supply; Medanito is also relatively cheap and avoids major maritime chokepoints.
- Argentine oil exports
- Argentina’s total oil exports averaged 215,000 barrels per day this year.
- Asian-bound exports
- Exports to Asia averaged a record 35,000 barrels per day through July.
- Price discount
- Medanito trades at an estimated $1-$2 per barrel discount to comparable US oil.
- Oil grade
- Medanito is comparable to US West Texas Intermediate.
- Current port capacity
- Argentine ports can load Aframax vessels but not very large crude carriers.
- Planned infrastructure
- The Vaca Muerta Oil Sur project, scheduled to begin operating next year, includes a crude pipeline and a terminal for some of the largest tankers.
- Main existing destinations
- Most of Argentina’s exported oil currently goes to the United States and Chile.