UPDATE 1-Saudi July crude supply to China to remain at record low
SAUDI ARAMCO 2222.SA | 0.00 |
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SINGAPORE, June 11 (Reuters) - Saudi Arabia's crude oil sales to China are expected to remain at record lows in July as elevated prices in the wake of the U.S.-Israeli war on Iran continue to weigh on demand from the world's largest crude importer, sources familiar with the matter said.
The allocations, closely watched by market participants as a gauge of Chinese demand, indicate that refiners remain reluctant to import high-priced barrels following run cuts and as they draw on domestic inventories.
Saudi Aramco 2222.SE will ship about 12 million barrels of oil to customers in China for July loading, or about 387,096 barrels per day (bpd), they said. The sources requested anonymity as they were not authorised to speak to the media.
Sinopec 600028.SS, the world's largest refiner by processing capacity, did not buy any Saudi crude for a second consecutive month, according to the sources.
Buying by another major refiner, Rongsheng Petrochemical 002493.SZ, was also much lower than pre-war levels.
The buying decisions came after Aramco cut its July official selling prices to Asia by $6 per barrel from the previous month, though they stayed much higher than pre-war levels.
Refiners in China have cut runs as elevated crude costs and weak fuel demand led to refining losses, resulting in decade-low oil imports in May.
Aramco, Sinopec and Rongsheng did not immediately respond to requests for comment.
