Saudi Arabia’s crude oil exports to China are projected to decline marginally in July, yet volumes will stay robust for the third consecutive month, underscoring Riyadh’s commitment to preserving its market share in the world’s largest crude importer.
According to trade sources on Tuesday, Saudi Aramco is set to deliver approximately 47 million barrels of crude to China next month, a slight drop from the 48 million barrels shipped in June. Despite this small decrease, the volume remains significant, reflecting Saudi Arabia’s ongoing strategy to maintain a competitive foothold in the Asian market.
Sources revealed that Chinese state-owned refiners—Sinopec, PetroChina, and Aramco’s Fujian joint venture—will see increased allocations in July. Meanwhile, shipments to three independent refiners will be reduced, signaling a strategic shift favoring long-term partners.
This minor volume adjustment follows Aramco’s recent decision to cut the official selling price of its Arab Light crude by 20 cents per barrel for Asian buyers, effective July. The grade will now trade at $1 above the regional benchmark, a pricing move analysts interpret as an effort to safeguard Saudi Arabia’s position amid a fiercely contested market.
Saudi Arabia is under growing competitive pressure from rivals such as Russia and Iran, both aggressively expanding their share in China by offering discounted crude and flexible contractual terms.
