On Wednesday, many sources reported Saudi Aramco notified North Asian clients they would receive the full June crude oil amounts they requested.
Sources indicated several Chinese refiners sought lower supply levels in June.
Chinese refiners requested less crude in June. Two sources anticipated a 5 million barrel drop from May.
Saudi Aramco lowered its June-loading crude pricing to Asia due to weaker refining margins. The market expected a bigger price cut.
Refiners are seeking cheaper oil from Russia or decreasing operational rates due to diminishing profit margins.
China is buying more inexpensive Russian oil from private mega refineries, capturing a larger portion of the medium sour Urals market from Indian refiners.
Even though OPEC and allies, known as OPEC+, announced output restrictions of 1.16 million barrels per day (bpd) starting in May for the remainder of the year, supply quantities were full.
Saudi Arabia, the top oil exporter, will decrease output by 500,000 bpd.
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