Saudi Oil Exports to China to Rise to Over Two-Year High in August – Sources

An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS

Riyadh, July 11 (Saudi Arabia Breaking News) – Saudi Arabia’s crude oil exports to China are expected to reach their highest level in more than two years in August, as the world’s top oil exporter seeks to regain market share in the world’s largest crude importer, five trade sources told Reuters on Friday.

State oil firm Saudi Aramco will ship around 51 million barrels to China next month, equivalent to about 1.65 million barrels per day (bpd), according to allocations to Chinese refiners seen by the sources. The planned volume is about 4 million barrels higher than July’s allocations and marks the highest level since April 2023, according to data compiled by Reuters and analytics firm Kpler.

China remains the biggest buyer of Saudi crude globally. The sources said Sinopec, Asia’s largest refiner, will receive more barrels in August as it ramps up output following maintenance work at several plants in the second quarter. Allocations to other Chinese refiners will remain unchanged from July, they added.

Saudi Arabia this week raised official selling prices for Asian and European buyers by more than $1 per barrel for August shipments, as domestic demand is expected to increase and Chinese consumption continues to recover.

Asian refiners have already requested more term supplies for August and September from Middle Eastern producers after spot premiums rose sharply in June amid the Iran–Israel conflict.

The increased supply also comes after the OPEC+ group agreed to raise production by 548,000 bpd in August as part of a gradual unwinding of earlier voluntary output cuts.