Saudi Arabian crude’s market share in China is expected to recover next month, according to anonymous trade sources quoted by Reuters today.
Saudi Arabia’s crude exports to China have fallen for four consecutive months, the report said, adding that some traders expect this to change in August, with imports from the country rising for the first time since May.
Saudi Arabia’s crude exports to China totaled 36 million barrels in July, or just over 1 million barrels per day, Reuters reported, citing shipping data from Kpler. But for August, some traders expect the total to be at least 44 million barrels, Reuters reported.
Saudi Arabia was once China’s largest crude oil supplier, but Russia took the top spot last year. In 2023, Russia exported 107.02 million tonnes of crude oil to China, up 24% from 2022. Meanwhile, Saudi Arabia exported 85.96 million tonnes to Chinese buyers last year, down 2% from 2022. Saudi Arabia remains the largest crude oil supplier to all of Asia.
News of the recovery in Chinese imports of Saudi crude oil came on the heels of a separate report that total Saudi crude exports fell to the lowest in 10 months in June, due to higher domestic consumption during peak demand periods and continued strength in exports from Russia to OPEC+ partners and shared Asian customers.
Hopes of an increase in China’s imports of Saudi oil came on the heels of news that Riyadh would cut its official oil prices to Asian customers for a second straight month, as reported by Reuters, with the flagship Arab Light Blend for August loading set to fall to its lowest price since March. Traders said Saudi crude was now more affordable after months of high prices.
Article by Charles Kennedy of Oilprice.com
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