Saudi oil exports to China set to rebound

Saudi crude oil exports to China are set to rebound in August to at least 44 million barrels, driven by deep price cuts from state energy giant Saudi Aramco, trade sources told Reuters on Tuesday. This marks the first rise in four months, up from about 36 million barrels in July, and will help the world’s biggest oil exporter regain its share in the largest import market.

In June, Saudi exports to China fell to 1.12 million barrels per day (bpd), the lowest since March 2020, according to analytics firm Kpler. Chinese buyers of Saudi oil include Zhejiang Petrochemical, Sinopec, Sinochem, and PetroChina.

Additionally, Saudi Aramco will supply full contractual volumes to at least three other North Asian refiners in August. This decision follows Saudi Aramco’s second consecutive month of price cuts for August-loading crude to Asia, with the flagship Arab Light crude priced at its lowest since March.

One source noted that August’s official selling prices (OSPs) for Saudi crude are more reasonable than in previous months when Saudi term supply was priced higher than other grades sold on the spot market.

Attribution: Reuters