Saudi Crude Exports to China Set to Fall After Aramco Price Hike

Saudi Arabia’s crude shipments to China are expected to fall to roughly 43 million barrels in September, or about 1.43 million barrels a day, according to allocation data seen by traders. The volume would be down from about 1.65 million barrels a day in August, when deliveries hit their highest level in more than two years. The pull-back follows Saudi Aramco’s decision last week to raise the official selling price of its flagship Arab Light crude for Asian customers for a second consecutive month. The premium was lifted to $3.20 a barrel above Oman/Dubai quotes, the highest since April. Chinese refiners including Sinopec and its Fujian joint venture with Aramco, along with PetroChina and Shenghong Petrochemical, are among those trimming September liftings, traders said. The reduction underscores how higher Saudi prices are prompting some processors to seek alternative supplies at a time when overall Chinese crude demand remains robust.