• 3 minutes Cyberattack Forces Shutdown Of Largest Gasoline Pipeline In United States - Zero Hedge
  • 6 minutes Renewable Energy Capacity Jumped 45% Worldwide In 2020; IEA Sees 'New Normal'
  • 11 minutes Forecasts for Natural Gas
  • 31 mins U.S. Presidential Elections Status - Electoral Votes
  • 3 hours Electric vehicle market growth is a blessing for some metals — and not a big worry for oil
  • 53 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 45 mins .
  • 3 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 1 day CRAPPIFORNIA DOES IT AGAIN! California proposes to steer new homes from gas appliances
  • 1 day Сryptocurrency predictions
  • 1 day Joe Biden's Presidency

Sinopec To Slash Crude Imports From Saudi Arabia By 40%

China’s Sinopec, the largest oil refiner in Asia, will shut down its biggest refinery for a major overhaul starting May 1. This will coincide with a period in which Sinopec will have slashed its Saudi crude oil imports by 40 percent after the Saudis unexpectedly raised the official selling price of their flagship Arab Light crude oil for Asian customers.

Sinopec will close for around 40 days beginning May 1 its 460,000-bpd refinery and the whole ethylene complex of Zhenhai Refining and Chemical Company in the eastern coastal province of Zhejiang, one of China’s largest facilities that process Saudi crude oil, Reuters reported on Wednesday, citing an industry source briefed on the issue.

On Tuesday, an official at Sinopec’s trading arm Unipec told Reuters that it had requested 40 percent lower Saudi oil import loadings for the month of May and that the request had been approved.

Sinopec asked for lower Saudi oil imports earlier this week after Saudi Aramco unexpectedly raised last week the official selling price (OSP) of its flagship Arab Light crude grade to Asian customers for May loadings.

Aramco raised the OSP for Arab Light for Asia next month by $0.10 a barrel compared to April prices, to a premium of $1.20 to the Oman/Dubai Middle East benchmark, in a move seen as bullish by futures traders.

Related: Russia Wants To Drop Dollar For Oil Payments

Before Aramco’s May pricing became known, a Reuters survey of six refiners and traders showed that they expected Saudi Arabia to cut its OSPs for all its crude grades bound for Asia next month. Traders had expected the Arab Light crude price to be lowered by between $0.50 and $0.70—the lowest in six months—to reflect weaker Dubai crude prices.

Not only Sinopec is cutting Saudi crude oil imports for May. Two North Asian refineries also plan to cut Saudi oil volume nominations for May by 10 percent, sources at the two refineries told Reuters on Tuesday.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • John Brown on April 11 2018 said:
    What this tells you I’d there is plenty of oil sloshing around the world & Saudi Arabia doesn’t have the pricing power w major buyers it likes to think it has. They can get oil elsewhere.

Leave a comment

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