Commercial sources reported today, Tuesday, that Saudi crude oil supplies to China are expected to decline in March compared to February, following the Kingdom's decision to raise official selling prices for Asia to their highest level in over two years.
Decline in Saudi oil allocations to China for the second consecutive month Data regarding oil quotas allocated to Chinese refineries indicated that Saudi Aramco will ship approximately 41 million barrels to China in March, down from 43.5 million barrels in February, suggesting a decrease in supplies for the second consecutive month.
Changes in supply distribution among Chinese refineries According to sources, the Fujian refinery, a joint venture between China's Sinopec and Aramco, will receive smaller quantities of Saudi crude in March, while Aramco will increase supplies to PetroChina and the private petrochemical company Shinhong.
Increase in Saudi oil prices to the highest level since 2022 This decline in supplies comes after Aramco raised oil prices for March deliveries to customers in Asia and other regions, with the official selling price for Arab Light crude increasing by $2.40 to reach $3.90 per barrel above the average of Oman/Dubai crude, the highest level since December 2022.
