Sources said that Chinese refining companies are reducing their imports from Saudi Arabia due to the rise in Saudi crude prices and weak refining margins.
Quoted Reuters “Trade sources said on Tuesday that exports…Oil Saudi crude to China will decrease for the third month in a row in July to about 36 million barrels amid factory maintenance work and with some refineries choosing other sources of cheaper oil.
The sources expected July exports to decline from about 39 million barrels in June.
The sources added that a government refining company and a private refining company reduced their allocations to Saudi crude in July compared to June.
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It was not immediately possible to contact the state oil company Aramco Saudi Arabia To comment.
The sources said that Chinese refiners are reducing their imports from Saudi Arabia, the second largest oil supplier to China, due to the rise in Saudi crude prices and weak refining margins.
This came despite Saudi Aramco reducing the official selling prices for its crude exports in Asia in July for the first time in five months.
