Chinese refiners are cutting back on Saudi term crude purchases for August as weak domestic demand, steeper discounts from rival producers, and renewed disruption in the Strait of Hormuz weigh on buying.
Saudi allocations to China have fallen sharply since the Iran war began, with monthly volumes running 10–20 million barrels, well below last year’s average of ~40 million barrels, highlighting intensifying competition for Asia’s biggest oil market.
Note by Alessandro Bazzoni