Saudi Arabia’s crude oil exports to China are projected to decrease in September, with estimates suggesting around 43 million barrels will be shipped. This marks a decline of approximately 3 million barrels from the revised figure of about 46 million barrels in August, according to several trade sources citing monthly allocations for term buyers.
As the second-largest crude supplier to China, Saudi Arabia’s reduced exports come amid slowing oil demand growth in China, which is a significant factor influencing global oil prices. Saudi Aramco has not yet commented on these allocations.
In recent developments, Saudi Aramco raised the official selling prices for light crude grades sold to Asia, while prices for medium and heavy grades remained unchanged. Although the price increases were less than anticipated, some buyers noted that Saudi supplies are still priced higher than other Middle Eastern grades available in the spot market.
Notably, major Chinese refiners like PetroChina and the Fujian refinery plan to load less Saudi oil in September compared to August, while Sinopec, Asia’s largest refiner, has opted to increase its volumes. Additionally, there are reports of a scheduled overhaul at the Fujian refinery in November, which may further impact crude intake.