By: AGBI

Saudi Arabia’s crude oil exports to China are to rise to their highest in more than two years in August, five trade sources said on Friday, as the top exporter seeks to regain market share in the world’s biggest importer.

State oil company Saudi Aramco will ship about 51 million barrels to China in August, or 1.65 million barrels per day (bpd), a tally of allocations to Chinese refiners showed.

The supply is four million barrels higher than July’s allotted volume and the highest since April 2023, data by Reuters and Kpler showed.

China is the world’s biggest buyer of Saudi Arabian oil.

State refiner Sinopec will be receiving more crude in August, the sources said. The biggest refiner in Asia is ramping up processing output after completing maintenance at several plants in the second quarter.

Saudi Aramco and Sinopec could not be immediately reached for comment.

The allocation for other Chinese refiners were unchanged from the previous month, the sources said.

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Saudi Arabia, the world’s biggest oil exporter, on Sunday hiked August prices for Asian and European buyers by more than $1 a barrel as domestic crude demand is expected to rise, reducing exports, and Chinese consumption is likely to increase.

Asian refiners have already requested more term crude supplies for loading in August and September from Middle Eastern producers after spot market premiums jumped in June because of the Iran-Israel conflict.

The higher supply to China also follows the agreement by Opec+ to raise production by 548,000 bpd in August as the group unwinds earlier voluntary cuts.