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Saudi Arabia will maintain oil supply despite lower Chinese demand

Updated: Jul 12, 2023

Despite China's request for a lower oil offer, it has been confirmed that Saudi Arabia will maintain the full volume of crude oil designated for Asia.

Saudi Aramco, the world's largest oil exporter, also announced last week that it would continue the production cut of 1 million barrels per day until August.

This decision has led to an increase in prices for the majority of crude oil it sends to Asian countries.

Furthermore, according to Reuters, some large Chinese state-owned and independent refiners have requested a lower offer for August.

These sources estimated that the combined volume could be around 8 million barrels less than what was taken in July.

Due to the high price of Saudi oil, Chinese refiners have sought cheaper alternatives, finding some in Africa and Latin America to reduce costs.

Meanwhile, China's commercial onshore crude oil inventory reached about 980 million barrels at the end of June, which is approximately 20 million barrels less than the all-time high set in August 2020, according to data analysis firm Vortexa, as reported by Reuters.

Saudi Arabia confirmed that will maintain oil supply to Asia
Saudi Arabia will maintain oil supply to Asia

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