Saudi Aramco’s oil supply to China is set to drop to its lowest level in months, with April shipments expected at 34-36 million barrels, down from 41 million in March. If the volume falls below 36 million, it would be the smallest since early last year.
Aramco’s sales to Asia, particularly China, play a key role in regional refining, influencing spot market purchases from other producers like Iraq and the UAE. This decline comes as OPEC+ prepares to increase output.Aramco’s latest official selling prices were lower than anticipated in a Bloomberg survey.
It remains uncertain whether the decline in sales is due to reduced demand from Chinese buyers or a cut in supply from Saudi Arabia.This drop in Saudi oil shipments coincides with OPEC+’s plan to gradually restore production starting next month, marking the beginning of what could be an extended series of small supply increases.
This development, along with broader concerns over the potential impact of the US-led trade war on energy demand, has put pressure on crude prices.Meanwhile, three refiners outside of China confirmed they received their full requested crude volumes.
