Saudi Arabia to Maintain Elevated Oil Supply to China in June as OPEC+ Boosts Output

Saudi Arabia’s crude oil shipments to China—the world’s top importer—will remain at a one-year high in June, holding steady at 48 million barrels, matching May’s elevated volumes, according to trade sources. The sustained supply follows OPEC+’s decision to ramp up production and Saudi Aramco’s competitive pricing strategy to retain market share.

Key Details:

• Steady Volumes: Aramco’s June allocations to Chinese refiners mirror May’s 48 million barrels—the highest since at least early 2024.
• Refinery Mix:
  • Higher Liftings: Sinochem, Rongsheng, and Hengli Petrochemical to take more Saudi crude.
  • Lower Liftings: Sinopec, CNOOC, and Aramco’s Fujian joint venture to reduce volumes.
• Price Strategy:
  • Aramco cut May prices to near 4-year lows to align with OPEC+ output hikes.
  • June prices edged up slightly, but remain competitive versus rival suppliers like Russia.

Market Context:

• China’s Imports: Q1 2024 Saudi crude imports rose 3.8% YoY to 1.62 million bpd, solidifying its position as China’s No. 2 supplier after Russia.
• OPEC+ Surge: The group’s June output hike of 411,000 bpd ensures ample supply, though demand concerns linger amid global trade tensions.