Saudi March crude oil supply to China to rise to multi-year high, sources say

SINGAPORE: Saudi Arabia’s crude oil exports to China are set to touch a multi-year high in March after the kingdom cut its official selling prices to Asia for a fourth month and attracted more demand, several trade sources said.

State oil company Saudi Aramco will ship at least 53 million barrels to China in March, or about 1.71 million barrels per day (bpd), a tally of allocations to Chinese refiners from trade sources showed.

The allocation volume marks a jump from the previous two months, when it remained under 50 million barrels, and is the highest since March 2023, according to Reuters’ records.

Companies that planned to increase Saudi crude liftings next month included PetroChina and Rongsheng Petrochemical, the tally showed.

Meanwhile, Hengli Petrochemical will lift zero volume for a third consecutive month, the sources said.

Aramco and the refining companies did not immediately respond to requests for comment.

The March OSP for Arab Light crude was set at parity with the Oman/Dubai average, down from a premium of $0.30 a barrel in February and a fourth month cut.

The March OSP is the lowest since December 2020, Reuters’ data showed, although the 30-cent price cut was smaller than expected.