Introduction 1-Sources: Saudi oil supplies to China are expected to fall to around 10 million barrels in June
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Singapore, May 11 (Reuters) - Saudi crude oil sales to China are expected to fall further in June, sources familiar with the matter said, after buyers cut back on demand due to higher prices linked to the U.S.-Iran conflict.
The sources added that Saudi Aramco will ship about ten million barrels of oil to its customers in China during the month of May, which is equivalent to 333,333 barrels per day.
Data from Kpler and Reuters shows that this figure represents the lowest level of Saudi oil exports to China ever, compared to an average of 1.39 million barrels per day that the kingdom was shipping to China in 2025.
The sources, who declined to be named because they were not authorized to speak to the media, said that major Chinese refiners, including China Petroleum & Chemical Corp. (Sinopec), Sinochem and Rongsheng Petrochemical, had cut their shipments for June.
Saudi Aramco and the Chinese companies have not yet responded to requests for comment.
Last week, Saudi Arabia set the official selling price for its Arab Light crude for June to Asia at a premium of $15.50 per barrel, down from the record premium of $19.50 in the previous month.
The sources explained that this reduction was less than what some Chinese buyers had requested, which kept the price of Saudi crude high.
In April, major Chinese state-owned oil companies cut operating rates even further compared to the previous month, due to the continued disruption of oil flows from the Strait of Hormuz.
Saudi crude oil exports have declined sharply since the outbreak of war on February 28, and the Kingdom has rerouted its oil exports to the port of Yanbu on the Red Sea via the East-West pipeline.
