Saudi Arabia’s Oil Shipments to China Rise After Prices Cut to Five-Year Low
State producer Aramco’s deep discount draws stronger Chinese demand, lifting export volumes to multi-year highs
Saudi Arabia’s crude oil exports to China have increased significantly following a series of cuts to its official selling prices aimed at Asia, with loadings for upcoming shipments set to reach multi-year highs as demand from Chinese refiners responds to the more competitive pricing.
In its latest pricing cycle, Saudi Aramco reduced the official selling price of its flagship Arab Light grade to parity with the Oman/Dubai benchmark, marking the lowest premium since late 2020. The adjustment follows consecutive monthly cuts designed to preserve and expand market share amid ample global supply and softening regional benchmarks.
The price strategy appears to be paying dividends: allocations to Chinese customers for March shipments are expected at around 53 million barrels, or approximately 1.71 million barrels per day, reflecting a notable rise from volumes earlier in the year and the highest level since March 2023. Several major state-owned and independent refiners have increased their nominations in response to the lower cost of Saudi crude.
Industry traders and analysts say the pricing move makes Saudi barrels especially attractive relative to other Middle Eastern and global suppliers, helping Riyadh reinforce its role as a primary energy partner for Beijing even as global market dynamics evolve.
They add that private Chinese refiners, anticipating 2026 import quotas, have also boosted their purchases.
The increase in volumes underscores how responsive China’s crude import pattern can be to pricing signals from major producers, especially when official selling prices fall to multi-year lows.
For Saudi Arabia, which remains one of China’s top crude suppliers, the strategy not only supports export growth but also helps manage competitive pressures from alternative sources in a complex global oil market landscape.
Market observers note that while higher Chinese demand is a positive near-term development for Saudi exports, longer-term trends will continue to be influenced by broader supply conditions, refinery margins and global economic activity.
In its latest pricing cycle, Saudi Aramco reduced the official selling price of its flagship Arab Light grade to parity with the Oman/Dubai benchmark, marking the lowest premium since late 2020. The adjustment follows consecutive monthly cuts designed to preserve and expand market share amid ample global supply and softening regional benchmarks.
The price strategy appears to be paying dividends: allocations to Chinese customers for March shipments are expected at around 53 million barrels, or approximately 1.71 million barrels per day, reflecting a notable rise from volumes earlier in the year and the highest level since March 2023. Several major state-owned and independent refiners have increased their nominations in response to the lower cost of Saudi crude.
Industry traders and analysts say the pricing move makes Saudi barrels especially attractive relative to other Middle Eastern and global suppliers, helping Riyadh reinforce its role as a primary energy partner for Beijing even as global market dynamics evolve.
They add that private Chinese refiners, anticipating 2026 import quotas, have also boosted their purchases.
The increase in volumes underscores how responsive China’s crude import pattern can be to pricing signals from major producers, especially when official selling prices fall to multi-year lows.
For Saudi Arabia, which remains one of China’s top crude suppliers, the strategy not only supports export growth but also helps manage competitive pressures from alternative sources in a complex global oil market landscape.
Market observers note that while higher Chinese demand is a positive near-term development for Saudi exports, longer-term trends will continue to be influenced by broader supply conditions, refinery margins and global economic activity.
