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Chinese refiners ask for less Saudi oil despite price cut

Aramco's Fadhili project will boost the plant’s processing capacity by 60% by November 2027 Reuters/Ahmed Jadallah
Aramco's Fadhili project will boost the plant’s processing capacity by 60% by November 2027

Chinese refiners have lowered orders for Saudi crude oil for February despite Saudi Aramco’s biggest price cut in 13 months.

About 38.5 million barrels were nominated by Chinese refiners for February loading, down slightly from about 40 million barrels for January, Reuters reported, citing trading sources.

State-owned Saudi Aramco has cut the official selling price (OSP) for February-loading Arab Light to Asia by $2 a barrel from January to $1.50 a barrel over Oman/Dubai quotes.

“The price cut came too late. Refineries had set plans for oil purchase and production before Saudi revealed the OSPs,” a trader with a North Asian refiner told the news agency.

Aramco has notified at least five North Asian buyers that it will supply full contractual volumes in February.

However, two Indian state refiners have plans to increase crude imports from Saudi Arabia after the price cut.

In November 2023, Saudi Arabia announced its decision to maintain its voluntary cuts of one million barrels per day through the first quarter of 2024.

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