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Saudi Arabia cuts oil exports to China for July

Saudi Arabia will ship lower-than-nominated crude oil volumes to some of its Chinese buyers in July, but will provide most other Asian customers with all the crude they have requested

Many buyers in Asia have asked for more Saudi crude oil for July as barrels from the Middle East are cheaper than those from the North Sea and the U.S. because of a drop in the Dubai/Oman benchmark compared Brent and WTI benchmarks. The oil going to Asia from the Middle East is priced off the Dubai/Oman benchmark.

The Saudis will not fully meet all Chinese requests but will supply all the volumes and even extra barrels to some customers in India, Japan, South Korea, and Thailand. This past weekend, Saudi Arabia raised its official selling prices (OSPs) to Asia and Europe for July, as widely expected, signaling confidence in demand in the near term.

Strong refining margins in Asia amid a global crunch in fuels also played a part in the Saudi decision to raise the prices for its oil selling in Asia.

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Source
zerohedge.com

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