• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 7 hours China wields coronavirus to nationalize American-owned carmaker
  • 3 hours Open letter from Politico about US-russian relations
  • 20 mins Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 23 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 2 days Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 18 hours US will pay for companies to bring supply chains home from China: Kudlow - COVID-19 has highlighted the problem of relying too heavily on one country for production
  • 2 days China's impending economic meltdown
  • 3 days Why Oil could hit $100
  • 8 hours Trump is turning USA into a 3rd world dictatorship
  • 3 days Pompeo upsets China; oil & gas prices to fall
  • 3 days Brent above $45. Holding breath for $50??
  • 2 days Rational analysis of CV19 from Harvard Medical School
  • 2 days The Truth about Chinese and Indian Engineering
  • 2 days What the heroin industry can teach us about solar power (BBC)
Controversial Nuclear Plant In Belarus Nears Completion

Controversial Nuclear Plant In Belarus Nears Completion

Belarus’ controversial Russian-built nuclear power…

Has The Oil Market Finally Turned A Corner?

Has The Oil Market Finally Turned A Corner?

August is usually a bad…

Saudi Arabia To Raise Oil Shipments To China

Saudi Arabia sealed deals with Chinese oil importers that will see the Kingdom’s exports to China rise to 1.67 million barrels daily in 2019, Reuters reports, citing a statement from state oil giant Aramco.

According to official figures from Riyadh, China is the biggest importer of its crude oil, but Saudi Arabia is no longer the biggest oil supplier for China. Russia took its place two years ago. Even so, China remains a major destination for Saudi oil, hence the five contracts that will see its shipments there increase.

According to The National, the five contracts are a move, as per the Aramco statement, to "focus on customer diversification, strategic relationships, and tapping regional demand previously not supplied by Saudi Aramco. They are critical to diversifying Saudi Aramco’s customer base and capturing a large share of China’s future incremental oil demand, which will increasingly come from private refiners.”

“Not only is this [agreement]...unprecedented for China, but rarely has a single country in Saudi Aramco’s history bought so much oil. The new supply contracts make it very likely that Saudi Aramco next year will become China’s largest supplier, a position it also held from 2006 until 2016.”

Earlier this year, Aramco for a while curbed its exports to Asia to stabilize prices, but it seems, judging from the statement, that Aramco has prioritized building its market share in what is perhaps the top market for its crude oil and not a second too early, either.

Last month, China’s crude oil imports hit a historic high at 9.61 million barrels daily as teapot refiners exited maintenance season and demand for fuels continued strong, boosting their profit margins and stimulating greater demand for imported crude. Over the first ten months of the year, China’s oil imports rose by 8.1 percent on the year, while the October shipments alone surged by 32 percent on October 2017.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News