Saudi Oil Shipments to China Fall to Record Low

Saudi Arabia’s crude exports to China are expected to fall to record lows in June as elevated oil prices and ongoing Hormuz disruptions weigh on Asian demand.

(Reuters) — Saudi Arabia's crude oil exports to China are set to fall further in June after buyers cut nominations because of costly prices linked to the U.S.-Iran conflict, trade sources said on May 11.

State oil giant Saudi Aramco will ship about 10 million barrels of oil to its customers in China next month, or roughly 333,333 barrels per day (bpd), they said.

The number would mark a record low for data by Kpler and Reuters, and compared with an average 1.39 million bpd that the kingdom shipped to China in 2025.

Major Chinese refiners including Sinopec, Sinochem and Rongsheng Petrochemical have reduced their lifting for June, according to the sources, who were not authorized to speak to the media.

Saudi Aramco declined to comment on its June allocation to China. The Chinese companies did not immediately respond to a request for comment.

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

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

In April, Chinese state-owned oil majors further lowered operation rates in April from the previous month as oil flow from the key gateway Strait of Hormuz remained largely shut.

Crude exports from Saudi have plunged since the war broke out at the end of February, and it has been rerouting its oil exports to the Red Sea port of Yanbu via the East-West Pipeline.

Lower Saudi volumes to China in June will be a boon to other Asian buyers, analysts at Energy Aspects wrote in a note on May 11. They expected additional barrels to be redirected to other Northeast Asian customers.