Saudi Aramco has told its clients in North Asia that they will receive their full nominations of crude oil in August, according to sources familiar with the matter. However, top buyer China has once again requested lower supply.
The news comes after Saudi Aramco extended its 1 million barrel per day output cut by another month to August and hiked prices for most of its crude grades sent to Asian customers for a second straight month.
China's onshore commercial crude oil inventory reached around 980 million barrels by the end of June, about 20 million barrels short of a historical high in August 2020.
In summary, while Aramco is maintaining supply to its Asian clients, top buyer China is requesting lower volumes due to high prices. Some Chinese refiners are seeking alternatives from other regions to supplement crude intake.
