Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Chinese refiners seek less Saudi crude as demand weak

Published 11/11/2022, 06:44 AM
Updated 11/11/2022, 06:47 AM
© Reuters. FILE PHOTO: General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018.  REUTERS/Ahmed Jadallah//File Photo

By Muyu Xu

SINGAPORE (Reuters) - Several Chinese refiners have asked Saudi Aramco (TADAWUL:2222) to reduce December-loading crude oil volumes, two sources close to the matter said, as COVID-19 restrictions and a faltering economy have weakened fuel demand in the world's biggest oil importer.

The refiners sought to trim supplies for December by about half of the previous month's level, the sources said, asking not to be named because of the sensitivity of the issue.

Following Beijing's rigid COVID curbs, average refining rates at state-owned refineries fell to around around 70% between May and August. They have recovered to about 75%, compared to more than 80% in normal times, data compiled by China-based consultancy Zhuochuang showed.

China's crude oil imports in October recovered to the level last seen in May, supported by stockpile demand at two new refineries preparing for commercial operation.

Apart from the reduced demand, China has been buying Russian crude oil priced at steep discounts after the Ukraine crisis, squeezing out other suppliers, including Saudi Arabia.

© Reuters. FILE PHOTO: General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018.  REUTERS/Ahmed Jadallah//File Photo

Saudi Aramco did not immediately respond to a Reuters' request comment, which was made outside office hours.

Saudi Aramco has cut its December selling prices for its flagship Arab Light crude and told at least four refinery customers in North Asia they will receive full contract volumes of crude oil in December.

Latest comments

its because there gonna buy from Russia in dec, thats my guess.
True china using low demand and covid excuse so they can avoid sactions against them for buying russia crude
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.