Saudi Crude Oil Supply to China to Fall in December on Weak Demand
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Saudi Arabia's crude oil supply to China is set to decline to around 36.5 million barrels in December, marking the second consecutive monthly decrease and the lowest volume since July, according to trade sources cited by Reuters.
The decline is attributed to weak demand from the world's largest oil importer, with Chinese refiners expected to receive a lower volume of Saudi crude in December compared to the estimated 37.5 million barrels in November and 46 million barrels in October.
State-owned Chinese oil companies Sinopec, PetroChina, and Sinochem will be lifting less crude in December, while Saudi supply to the Fujian refinery joint venture is expected to rebound as the plant completes maintenance and resumes operations.
The drop in Chinese demand coincides with Saudi Aramco's decision to cut December official selling prices for all grades of crude sold to Asia.
Refining activity in China is projected to decline further in the last quarter due to sluggish profit margins and weak fuel consumption in road transport.
Saudi Arabia currently holds the position of China's second-largest crude supplier, trailing only Russia.
Chinese customs data reveals that Saudi crude exports to China fell by 10.8% to 59.52 million metric tons (1.58 million barrels per day) in the first nine months of 2024 compared to the same period last year.
Beyond China, two other North Asian refiners are expected to receive their full Saudi crude allocation for December, according to trade sources.