SINGAPORE, Aug 12 – Saudi crude oil exports to China are expected to decline in September to approximately 43 million barrels, according to several trade sources on Monday who cited monthly allocations for term buyers.
The September exports from Saudi Arabia, the world’s top oil exporter, are projected to decrease by around 3 million barrels compared to a revised volume of about 46 million barrels in August, the sources indicated.
Saudi Arabia holds the position as the second-largest crude oil supplier to China, the world’s leading oil importer and the biggest contributor to global demand growth. The slowing growth in oil demand in China is one of the key factors that have been capping global oil prices.
The allocations follow Saudi Aramco’s decision to raise official selling prices for light crude grades sold to Asia, while maintaining prices for medium and heavy grades. Although the price hikes were smaller than expected, some buyers noted that Saudi’s term supplies remain more expensive than other Middle Eastern grades available in the spot market.
Additionally, two North Asian refiners are set to receive steady crude supplies from Saudi Arabia, according to the sources.
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