According to WPB, Saudi Arabia’s crude exports to China are projected to decline in September, following two consecutive months of price increases for Asian buyers. The Kingdom’s decision to raise its official selling prices has led some Chinese refiners to scale back their purchases.
Current industry assessments suggest that the world’s largest crude exporter will deliver about 43 million barrels of oil to China in September, around 1.43 million barrels per day. This represents a decrease from the estimated 1.65 million barrels per day allocated in August, when shipments reached a two-year high.
Prominent buyers such as Sinopec ,Asia’s largest refiner, and its Fujian Refinery joint venture with Saudi Aramco are among those expected to reduce intake. For September, the price of Arab Light crude for Asia has been set at $3.20 per barrel above the Oman/Dubai average, an increase of $1.00 compared with August.
The upward revision applies not only to Arab Light but also to other grades—Arab Extra Light, Arab Medium, and Arab Heavy—which have been priced between $0.70 and $1.20 per barrel above benchmarks. The back-to-back price hikes reflect Saudi Arabia’s confidence in continued strong demand from its core Asian markets.
Additionally, a potential decrease in Russian crude shipments to India, influenced by new tariffs, could bolster demand for Saudi and other Middle Eastern oil in Asia, shaping trade flows in the months ahead.
By Bitumenmag
Oil, Crude, Bitumen
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