SAUDI crude oil exports to China are set to fall in September to about 43 million barrels, several trade sources said on Monday (Aug 12), citing monthly allocations for term buyers.
September exports from the world’s top exporter to China are estimated to slip by about three million barrels from a revised volume of about 46 million barrels in August, the sources said.
Saudi Arabia is the second-largest crude supplier to China, world’s top oil importer and the 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.
While the price hikes were smaller than expected, some buyers said Saudi’s term supplies were still more expensive than other Middle Eastern grades sold in the spot market.
Another two North Asian refiners will be receiving steady crude supplies from Saudi Arabia, the sources said. REUTERS
