American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

Why Saudi Arabia’s oil exports to China may drop to a one-year low in April

by admin March 15, 2025
March 15, 2025
Why Saudi Arabia’s oil exports to China may drop to a one-year low in April

Trade sources revealed on Thursday that Saudi Arabia, the world’s largest oil exporter, is expected to see a significant decrease in its crude oil shipments to China in April, according to a Reuters report. 

The decline is attributed partly to scheduled maintenance at Chinese refineries owned by Sinopec, China’s state-owned oil and gas company. 

This decrease in shipments is projected to reach their lowest point in over a year, signaling a potential shift in the oil trade dynamics between the two nations.

While the maintenance at Sinopec refineries is a primary factor behind the anticipated drop, other factors may also be at play. 

These could include fluctuations in global oil prices, changes in Chinese domestic oil demand, and potential shifts in China’s sourcing strategy for crude oil.

Despite the temporary decline, Saudi Arabia is likely to remain a key supplier of crude oil to China in the long term, given the strong economic ties and energy cooperation between the two countries.

Saudi cuts oil allocations

In April, Saudi Arabia, a major OPEC oil producer, decreased its oil allocation to Chinese customers. 

Data from Reuters indicates that the allocation for April was approximately 35.5 million barrels, marking a significant reduction from the 41 million barrels allocated in the previous month, March. 

This decrease in oil allocation could have various implications for both the Chinese and Saudi Arabian economies, as well as the global oil market.

Despite the Organization of the Petroleum Exporting Countries (OPEC) and its allies, having reached a consensus to boost production in April, China’s demand for Saudi Arabian oil has seen a decline. 

This development indicates a potential shift in the global oil market dynamics, with China possibly diversifying its oil import sources or adjusting its energy consumption patterns. 

OPEC’s decision

The decision by OPEC+ to increase production was aimed at stabilising oil prices and meeting the anticipated rise in global demand as economies recover from the pandemic-induced slump. 

However, the decrease in Chinese demand for Saudi oil could impact the effectiveness of this strategy and lead to a supply glut in the market, potentially driving down oil prices.

The cartel is scheduled to raise oil production by 140,000 barrels per day from April as it prepares to unwind the massive 2.2 million barrels per day of voluntary oil production cuts. 

OPEC and its allies had extended the voluntary production cuts several times last year due to poor demand and weak oil prices. 

The cuts are set to expire at the end of this month. 

Sinopec intends to close down at least 700,000 barrels per day of crude processing capacity at subsidiaries including the Yangzi, Jiujiang and Gaoqiao refineries. 

The closures will take place between mid-March and May, according to the report.

Disruptions easing

Trade disruptions caused by US sanctions on Russian and Iranian oil in late 2024 and early 2025 are easing, leading to stabilisation in Asian crude oil markets.

The trade of Russian Far East crude and Iranian oil to China is expected to increase in March as non-sanctioned tankers replace those under US embargo. 

The switch is driven by attractive profits for the non-sanctioned tankers.

India, the world’s third largest oil importer, has seen a rebound in Russian oil supplies this month.

The post Why Saudi Arabia’s oil exports to China may drop to a one-year low in April appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Why is NHS England being scrapped?
next post
Pernod Ricard, Remy, and other alcohol stocks fall as Trump threatens 200% tariff on European spirits

Related Posts

Honda and Nissan’s shares climb as merger talks...

February 5, 2025

Hamas releases video of hostage Hersh Goldberg-Polin in...

April 27, 2024

Oil majors face challenges after US cancels Venezuelan...

March 31, 2025

CIA to dismantle diversity programs in biggest restructuring...

February 21, 2025

Kenyan mountaineer dead and Nepali sherpa missing after...

May 25, 2024

Dow and S&P 500 rise; Nasdaq dips as...

November 22, 2024

Starship’s monumental third flight ends unexpectedly

March 17, 2024

Pope sparks anger after saying Ukraine should have...

March 12, 2024

Eight people arrested during latest UK protest after fatal...

August 3, 2024

Exclusive: Inside the foreign mission sent to battle...

August 10, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025
    • Inflation outlook in 2025: what April’s soft data isn’t telling you

      May 18, 2025
    • Rich List 2025: UK billionaires decline for first time in years amid market turmoil

      May 18, 2025
    • Novo Nordisk CEO to step down as obesity drug competition intensifies

      May 18, 2025
    • Argentina’s black market for dollar falters as President Milei dismantles currency controls

      May 18, 2025

    Categories

    • Business (2,979)
    • Investing (2,438)
    • Latest News (1,990)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved