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Study of the Middle East Markets and Trade between Africa, Europe, the West, and China

How Middle Eastern crude oil and petroleum products reach Europe, China and Africa: market structure, key products, trade and shipping routes, and the risk and compliance controls that apply before any transaction.

Energy trade from the Middle East to Europe, China and Africa

Executive summary

The Middle East retains a central position in global oil trade due to its abundant reserves, production capacity, export-oriented refineries, and storage and shipping ports. In 2025, approximately one quarter of global seaborne oil trade passed through the Strait of Hormuz, and around 80% of the oil and petroleum products transiting the strait were destined for Asia. This underlines the strategic importance of Asian markets, led by China. [1][2]

Europe remains an important market for diesel, jet fuel and middle distillates, particularly as supply chains have been reshaped and European sanctions have affected oil and products linked to Russian crude. Africa represents a growing opportunity that combines importing markets for refined products with major refining and consumption centres, while China remains the world’s largest crude oil importer and a key destination for Gulf oil flows. [3][4]

Europe

A key market for middle distillates and jet fuel, with increasing importance placed on compliance, sanctions and crude origin.

China

The world’s largest crude oil importer, closely linked to Middle Eastern supply and home to the world’s largest refining system.

Africa

Opportunities in crude oil, refined products, storage and logistics across diverse growth and refining markets.

Middle East

A global production, refining and export centre with major marine infrastructure and alternative hubs such as Fujairah, Yanbu, Duqm and Sohar.

≈ 25%of global seaborne oil trade passed through the Strait of Hormuz in 2025
≈ 80%of the oil and petroleum products transiting the strait were destined for Asia
11.6 mb/drecord Chinese crude oil imports in 2025 (EIA)

Market overview

An integrated system: crude oil, refined products, storage, shipping and compliance.

The Middle East is one of the world’s most important centres for crude oil production, refining and petroleum-product exports. The region combines large-scale production, modern refineries, storage terminals, ports capable of serving very large crude carriers, and pipeline systems that allow some countries to partially bypass maritime chokepoints.

Key products and commercial opportunities

Crude oil

Supply to refineries according to density, sulphur content, origin and commercial specifications.

Diesel / gasoil

Important for transport, industry and power applications, with strong demand in Europe and Africa.

Jet fuel

A strategic product linked to aviation activity, airports and international markets.

Fuel oil

Used in industrial, marine and power-generation applications depending on grade and sulphur level.

Naphtha

A key feedstock for petrochemicals and selected refining operations.

Gasoline and LPG

Widely traded products according to market specifications and seasonal demand.

European market

Demand for refined products with high compliance requirements.

Europe is an important market for petroleum products, particularly diesel, jet fuel and middle distillates. Changes in energy flows and European sanctions on Russia have increased the importance of verifying the origin of crude and refined products, ownership chains and refining history. In June 2026, the European Commission published updated guidance concerning the import ban on refined products obtained from Russian crude, making compliance an essential element of any transaction targeting the European Union. [3]

The opportunity for HM POWER GROUP in Europe is not limited to crude oil sales. It can include structured product supply, connecting suppliers with qualified buyers, storage, tanker coordination, inspection and documentation management. Mediterranean and Northwest European ports may be targeted according to product type and specification.

  • Mediterranean markets: Italy, Greece, Spain, France and Turkey.
  • Northwest Europe: Netherlands, Belgium, Germany and the United Kingdom.
  • Commercial priorities: diesel, jet fuel, gasoil, naphtha and selected crude grades.
  • Key factors: European specifications, origin, sanctions, insurance, vessel screening and documentation.

Chinese market

The world’s largest crude-oil import market.

China is the world’s largest crude oil importer. According to the U.S. Energy Information Administration, annual imports reached a record 11.6 million barrels per day in 2025 before temporarily declining during the second quarter of 2026 due to supply disruptions and higher prices. [4]

Historically, Middle Eastern supplies represent a significant share of China’s imports, and China and India have been among the largest recipients of oil moving through the Strait of Hormuz. The Chinese market therefore remains strategically important for Gulf and Iraqi crude, supported by buyers that can process multiple crude grades and by a diverse refining system. [1][2]

  • Priority products: crude oil, LPG, naphtha and selected refined products.
  • Ports and routes: Arabian Gulf / Fujairah, Arabian Sea, Strait of Malacca, Chinese ports.
  • Commercial factors: differential pricing, freight costs, credit terms, crude quality and refining margins.
  • Strategic advantage: market size, refinery diversity and the capacity to absorb large cargoes under short- or long-term contracts.

African markets

Growth opportunities in fuels, refining and storage.

Africa is not a single market, but a group of markets with different refining capacities, consumption patterns and infrastructure. Significant opportunities exist for the supply of diesel, gasoline, jet fuel and LPG, in addition to crude oil for selected refineries. In 2026, UAE crude was reported moving to the Dangote refinery in Nigeria, illustrating the flexibility of Gulf-Africa trade flows when pricing and availability change. [5]

Commercial focus can be placed on North, East and West Africa according to the product and port conditions. UAE and Omani ports can also serve as practical consolidation and shipping platforms for multiple African destinations, with particular attention to credit risk, product quality, local storage and discharge capabilities.

North Africa

Opportunities in refined products, regional trade and links between the Mediterranean and the Middle East.

East Africa

Demand for imported fuels with strong dependence on ports and inland distribution chains.

West Africa

Large product markets alongside developing local refining capacity.

Success factor: a strong local partner, disciplined payment terms, independent inspection and country and customer risk review.

Trade and shipping routes

The Middle East as a launch point to Europe, China and Africa.

Marine transportation remains the backbone of international oil trade. Chokepoints including the Strait of Hormuz, Strait of Malacca, Bab el-Mandeb and the Suez Canal affect pricing, transit time and insurance. According to the IEA, approximately 20 million barrels per day of oil and petroleum products moved through the Strait of Hormuz in 2025, with around 80% destined for Asia. [1]

Key regional export hubs include Fujairah, Ruwais, Jebel Ali, Sohar, Duqm, Saudi ports, Kuwaiti ports and southern Iraqi terminals. Fujairah and Yanbu offer additional strategic value by enabling access to markets outside the Gulf through alternative routes.

To Europe (or via the Cape of Good Hope when required)

  1. Arabian Sea
  2. Bab el-Mandeb
  3. Red Sea
  4. Suez Canal
  5. Mediterranean

To China

  1. Arabian Sea
  2. Indian Ocean
  3. Strait of Malacca
  4. East Asia

To Africa

  1. Red Sea and East Africa
  2. Mediterranean and North Africa
  3. West coast via the Cape of Good Hope

See the detailed Iraqi crude transport routes

How HM POWER GROUP works

Trading and supply coordination.

HM POWER GROUP seeks to develop long-term commercial relationships in crude oil and petroleum products by connecting producers, refineries, storage facilities, marine transportation companies and qualified buyers across the Middle East, Europe, China, Africa and other international markets.

The Group focuses on crude oil, diesel, gasoil, jet fuel, fuel oil, naphtha and other petroleum products, while maintaining commercial transparency, compliance procedures, banking documentation and professional logistics coordination.

Crude oil trading

Supply opportunities for different crude grades to international refineries and buyers.

Petroleum products

Diesel, gasoil, jet fuel, fuel oil, naphtha and LPG.

Storage and terminals

Coordination of storage, handling, measurement, inspection and terminal services.

Marine logistics

Tanker coordination, shipping routes, documentation and marine insurance.

Risk and compliance

Essential controls before executing any transaction.

Geopolitical risk

Tensions may affect production, ports, insurance and vessel routes.

Freight cost

Tanker rates can change transaction economics quickly, especially when maritime routes are disrupted.

Price risk

Brent volatility, crude differentials and refining margins can affect profitability.

Counterparty risk

The buyer, seller, bank, vessel and beneficial owner should be verified.

Sanctions and origin

The origin of crude or product and its refining history should be confirmed to avoid sanctions breaches.

Specifications and quality

Independent inspection and quality and quantity certificates are essential for reducing disputes.

Recommended core documents and procedures

  • KYC: Know Your Customer and counterparty verification
  • AML: Anti-Money Laundering controls
  • Sanctions and restricted-party screening
  • Certificate of Origin
  • Certificate of Quality / Product Specification
  • Quantity and Inspection Certificate
  • Bill of Lading and cargo insurance
  • Vessel and beneficial-ownership screening
  • Terminal and storage documentation
  • Banking documentation and payment terms

Discuss a shipment Read the Crude Oil Trading guide

Sources and references

  1. [1] International Energy Agency (IEA), Strait of Hormuz factsheet and Middle East and global energy markets (2026). iea.org
  2. [2] U.S. Energy Information Administration (EIA), Global Oil Transit Chokepoints and Short-Term Energy Outlook (2026). eia.gov
  3. [3] European Commission, guidance on the import ban for refined products obtained from Russian crude oil (June 2026). finance.ec.europa.eu
  4. [4] EIA, China’s crude oil imports fell in the second quarter (31 July 2026). eia.gov
  5. [5] Reuters, Nigeria’s Dangote refinery imports UAE crude (June 2026). reuters.com

This study is informational content and is not investment or legal advice. Sanctions, specifications, taxes, customs, shipping terms and compliance requirements should be reviewed separately for each transaction before execution. Updated October 2026.

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