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Saudi crude exports to China to slip in Sept, sources say

1 min Mena Today

Saudi crude oil exports to China are set to fall in September to about 43 million barrels, several trade sources said on Monday, citing monthly allocations for term buyers.

Saudi Arabia is the second-largest crude supplier to China © Mena Today 

Saudi Arabia is the second-largest crude supplier to China © Mena Today 

Saudi crude oil exports to China are set to fall in September to about 43 million barrels, several trade sources said on Monday, citing monthly allocations for term buyers.

September exports from the world's top exporter to China are estimated to slip by about 3 million barrels from a revised volume of about 46 million barrels in August, the sources said.

Saudi Aramco did not immediately respond to a request for comment.

Saudi Arabia is the second-largest crude supplier to China, the world's top oil importer and biggest contributor to global demand growth. Slowing oil demand growth in China is one of the key factors that have been capping global oil prices.

The allocations come after Saudi Aramco raised official selling prices for light crude grades it sells to Asia while maintaining those for medium and heavy grades.

The price hikes were smaller than expected, but some buyers said Saudi's term supplies were still more expensive than other Middle Eastern grades sold in the spot market.

PetroChina and the Fujian refinery plan to load less Saudi oil in September than August while Sinopec, Asia's largest refiner, has increased its volume, the sources said. These companies typically do not comment on commercial matters.

The Chinese major bought 6.5 million barrels of Middle East crude via the Platts trading window last month, trade data showed.

Separately, there is likely a scheduled overhaul at the Fujian refinery in November, another source said.

Another three North Asian refiners will be receiving steady crude supplies from Saudi Arabia, the sources said.

Reporting by Florence Tan

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