S. Arabia’s crude exports to China may drop in Sept

Saudi crude oil exports to China are expected to decrease to approximately 43 million barrels in September, according to several trade sources citing monthly allocations for term buyers. This marks a decline of about 3 million barrels from the revised figure of approximately 46 million barrels in August.

As the world’s largest crude exporter, Saudi Arabia is China’s second-largest crude supplier, closely following Russia. Meanwhile, China, as the top global oil importer, is a major driver of global oil demand. The slowing growth in China’s oil demand has significantly restrained global oil prices.

The allocations follow Saudi Aramco’s decision to increase official selling prices for light crude grades sold to Asia while keeping prices stable for medium and heavy grades. Although the price increases were less than anticipated, some buyers noted that Saudi term supplies remain pricier compared to other Middle Eastern grades available on the spot market.

Additionally, two North Asian refiners will continue to receive steady crude supplies from Saudi Arabia.

Attribution: Reuters