Saudi Arabia’s crude oil supply to China is projected to decrease to approximately 36.5 million barrels in December, marking a second consecutive month of decline and the lowest volume since July. This reduction is attributed to weak demand from the world’s largest oil importer, as reported by trade sources.
Monthly Supply Trends:
December’s supply is down from about 37.5 million barrels expected in November and approximately 46 million barrels in October, according to trade data compiled by Reuters.
Major Chinese state-owned refiners, including Sinopec, PetroChina, and Sinochem, are anticipated to lift less crude in December.
Joint Venture Recovery: While overall supply is decreasing, Saudi crude supply to the joint venture Fujian refinery is expected to rebound, as the facility is scheduled to complete maintenance and resume operations.
Pricing Adjustments: The decline in demand from China follows Saudi Aramco’s decision to cut the December official selling prices for all grades of crude sold to Asia, reflecting the broader market conditions.
Refining Activity: Refining activity across China is expected to further decline in the last quarter of the year, driven by sluggish profit margins and reduced fuel consumption in road transport.
Saudi Arabia’s Position: As the second-largest crude supplier to China after Russia, Saudi Arabia has seen its crude exports to China decrease by 10.8% in the first nine months of this year, totaling 59.52 million metric tons (1.58 million barrels per day) compared to the same period last year, according to Chinese customs data.
Other Markets: Outside of China, two other North Asian refiners are set to receive full allocations of Saudi crude for December, indicating stable demand from those markets.