For the third month in a row… Saudi oil exports to China decline

Reuters, citing several trade sources, revealed that Saudi crude oil exports to China “will decline for the third month in a row in July, to about 36 million barrels,” amid maintenance work and with some refineries choosing other, cheaper oil sources.

The sources said that July exports will decrease from about 39 million barrels this June, and are likely to record the lowest level this year.

She added that a government refinery and another private refinery reduced the quantities of Saudi crude that would be received in July compared to June.

Reuters reported that it was not yet possible to contact Saudi Aramco to obtain a comment.

The sources said that Chinese refineries are reducing their imports from Saudi Arabia, the largest exporter in the world and the second largest supplier to China, due to the rise in Saudi crude prices and weak refining margins.

This comes despite Saudi Aramco reducing the official selling prices for its crude exports to Asia in July for the first time in 5 months.

The sources said that Sinopec, the largest refining company in Asia and Saudi Arabia’s largest customer in China, kept its quantities unchanged in July, compared to the previous month, but the quantities will be the lowest this year.

It is noteworthy that the Organization of the Petroleum Exporting Countries and its allies led by Russia, OPEC Plus, agreed more than a week ago to extend most oil production cuts until 2025, but left room to gradually cancel the voluntary cuts by 8 members, starting in October.