China is likely to see a 7% monthly increase in Saudi Arabian oil imports in October, as the kingdom cuts prices for Asian nations and refiners in China seek more of its crude.
According to several US media outlets, citing industry sources, the Saudi exports are set to reach just over 46 million barrels (mbbl) next month, up from 43mbbl in September.
China’s slight rise in imports follows Saudi Aramco dropping its official Asia selling price for its Arab Light crude, making imports more attractive.
Arab Light is found in Asian refining hubs across China, India, Japan and South Korea, and is considered a well-rounded grade for refiners.
According to research from GlobalData, Offshore Technology’s parent company, Asia-Pacific is expected to see the start of 1,946 projects across the oil and gas value chain over the next few years.
Of these, 225 are upstream (fields) projects, midstream projects are at 521, downstream (refineries) projects are at 248 and petrochemical projects are the highest at 952.
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By GlobalData
Last month, Saudi Aramco announced a 3.4% decline in Q2 profits due to reduced crude volumes and weaker refining margins.
In the three months ending 30 June, Aramco reported Q2 net income of $29.03bn (SR108.86bn), exceeding the median estimate of $27.7bn provided by the company from 15 analysts.
For several years, Saudi Arabia was China’s biggest supplier of oil but was replaced by Russia in late 2023.
However, the commodity ties between Saudi Arabia and China are long-standing. At the start of this year, Saudi chemical manufacturer SABIC announced it would build a $6.4bn petrochemical complex in the Chinese province of Fujian.
