Saudi Arabia crude exports to China fall as buyers cut nominations

Saudi Arabia is expected to see a further decline in crude oil exports to China in June after buyers reduced their nominations due to persistently high prices during the US-Iran conflict, according to trade sources.

State energy company Saudi Aramco is set to ship about 10 million barrels of oil to Chinese customers next month, averaging around 333,000 barrels per day. This would mark a record low in data from Kpler and Reuters, compared with an average of 1.39 million barrels per day shipped to China in 2025, News.Az reports, citing AGBI.

Major Chinese refiners, including Sinopec, Sinochem and Rongsheng Petrochemical, have reduced their June crude liftings, according to sources who were not authorised to speak publicly.

Saudi Aramco declined to comment on allocation levels for June shipments to China, while the Chinese companies did not immediately respond to requests for comment.

Last week, Saudi Arabia set the official selling price of its June Arab Light crude for Asia at a premium of $15.50 per barrel, down from a record $19.50 the previous month. However, the reduction was smaller than expected by some Chinese buyers, keeping Saudi crude relatively expensive, the sources said.

Earlier disruptions to oil flows through the Strait of Hormuz during the ongoing conflict led Chinese state-owned refiners to reduce operating rates in April, further affecting import patterns.

Since the start of the war at the end of February, Saudi crude exports have declined, with shipments being rerouted to the Red Sea port of Yanbu via the East-West pipeline.

Analysts at Energy Aspects said the lower volumes to China in June are likely to benefit other Asian buyers, with additional barrels expected to be redirected to customers in northeast Asia.

News.Az 

By Leyla Şirinova