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China refiners cut back on Saudi term crude for August

Saudi Arabia’s monthly allocations to China have fallen to 10 million to 20 million barrels since the war began, down from about 40 million barrels on average last year.

Reported · Written up by our desk · Energy

Some Chinese refiners have reduced or stopped nominating Saudi term crude cargoes for August, according to traders with direct knowledge of supply arrangements cited by OilPrice.

The pullback reflects weaker demand in China, competition from other producers, and ongoing disruptions at the Strait of Hormuz that have cut Saudi supply in recent months.

OilPrice reports that since the start of the war, Saudi Arabia has allocated between 10 million and 20 million barrels to ship to China each month, compared with an average of about 40 million barrels allocated last year.

The article also notes that Saudi Aramco raised premiums for Asia-bound term supply early in the war, but that this month Saudi cut the price for its Asia loading next month by the most in two decades, with Arab Light priced at $1.50 per barrel below the Oman/Dubai average.

Latest closeWTI crude $78.04 ▲9.3%

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