China’s Aramco orders taper off as Russia competes for oil sales

While China remains Saudi Aramco’s biggest customer by far, its monthly oil purchases are trending downward as more Russian crude hits the market.

Energy Aspects, a London consulting firm that tracks the industry, said in an Aug. 11 note that Chinese refineries are holding back from purchases for September given the greater availability of oil from the Russian Urals, Bloomberg reports. 

Saudi Aramco is set to sell 43 million barrels of contractual supplies of September-loading crude to China, according to Bloomberg. That compares with 51 million barrels a month ago and a monthly, year-to-date average of about 45 million.

The global oil market may be undergoing a reordering of some crude flows after the U.S. and European Union increased pressure against India over its imports of Russian energy.

Given there’s been no comparable move against China, that’s raised the possibility that more of Moscow’s oil will be taken by mainland refiners, the news agency said.