Saudi crude exports to China set for record low

Saudi Arabia’s crude exports to China were expected to fall again in June after buyers cut nominations because prices stayed high during the US-Iran conflict, trade sources said.

State energy company Saudi Aramco was set to ship about 10 million barrels of oil to customers in China next month, or about 333,000 barrels per day (bpd), the sources said.

That would be a record low in Kpler and Reuters data, compared with an average 1.39 million bpd shipped to China in 2025.

Major Chinese refiners including Sinopec, Sinochem and Rongsheng Petrochemical reduced their June liftings, the sources said. They were not authorised to speak to the media.

Saudi Aramco declined to comment on June allocations to China. The Chinese companies did not immediately respond to requests for comment.

Last week, Saudi Arabia set the official selling price of June Arab Light crude to Asia at a premium of $15.50 a barrel, down from a record premium of $19.50 the previous month.

The reduction was smaller than some Chinese buyers sought, leaving Saudi crude expensive, the sources said.

Further reading:

• Why Gulf oil is ‘irreplaceable’
• Welcome to the new world of oil demand destruction
• Aramco expects oil woe until 2027 if no swift Hormuz resumption

In April, Chinese state-owned oil companies lowered operating rates from the previous month as oil flows through the Strait of Hormuz, a key shipping route, remained largely shut.

Saudi crude exports have fallen since the war began at the end of February, and Saudi Arabia rerouted shipments to the Red Sea port of Yanbu via the East-West pipeline.

Lower volumes to China in June were likely to help other Asian buyers, analysts at Energy Aspects wrote in a note on Monday. They expected additional barrels to be redirected to other northeast Asian customers.