Saudi Arabia will cut oil shipments to China in July, Reuters and Bloomberg sources revealed on June 10.
Accordingly, the world's largest oil exporter Saudi Arabia's Saudi Aramco has informed at least 4 Chinese refineries that the company will supply less of the oil volume signed in July.
This move is due to China increasing imports of Russian oil at significantly reduced prices. Meanwhile, more and more customers around the world are in demand for Saudi Arabian oil, especially in Europe.
Western customers are gradually draining their Russian energy and looking for new supply as sanctions against Russia over the Ukraine war are imposed.
Reuters and Bloomberg news reports also said that refineries in Japan, South Korea, Thailand and India will receive enough oil, some of which could be imported, including a Malaysian refinery in Pengerang. In addition, at least three refineries in Europe will also receive enough oil delivered in July from the Saudi Arabian company.
Earlier this week, Saudi Aramco surprised the market by raising the price of light Arabian crude oil in July for the Asian market to 2.10 USD/barrel compared to the level in June, much higher than expected.
This move has pushed the world oil price, which is already higher than 120 USD/barrel, to increase concerns about a shortage of supply in the context of peak demand in the summer in the Northern Hemisphere, the easing of the COVID-19 blockade in China and uncertainties about Russian oil supply due to sanctions.
