According to Observer.com, on June 10, several informed sources revealed that Saudi Aramco will reduce crude oil supply to China in July.
At present, the world’s largest oil company, Saudi Aramco (Saudi Aramco), has notified at least five refineries in North Asia (four of which are in China) that the company’s actual crude oil supply in July will be lower than the contract stipulations quantity. Saudi Aramco has not yet responded to the matter.
Reuters and Bloomberg analyzed that, on the one hand, China has increased its purchases of discounted oil from Russia after the conflict between Russia and Ukraine; on the other hand, under pressure from the United States, European and some Asian countries are reducing their imports of Russian crude oil, so they are interested in Saudi Aramco. Demand for crude oil climbed.
01 Asia will pay $6.50 more
Aramco is interested in meeting demand from other buyers in Europe and Asia, several people familiar with the matter said. They revealed that Japan, South Korea, Thailand and other countries will receive the amount of crude oil they require, and some of them will even receive additional supplies. In addition, at least three European refineries have also received their entire contracted supplies for July.
After announcing the ban on Russian energy, the United States enlisted its allies to implement the ban on Russian oil. Finally, the EU officially approved the sixth round of sanctions against Russia on June 2. Within 6 to 8 months after the sanctions take effect, the purchase of Russian oil and its refined products by sea will be prohibited.
In sharp contrast to European and some Asian buyers scrambling to find alternative energy sources, China and India are increasing their purchases of Russian crude oil. Bloomberg reported in May that this “for some Asian countries, deeply discounted oil is an opportunity too good to pass up.”
The latest statistics from S&P Global, an international financial data institution, show that European customers boycotted the purchase of Russian Urals crude oil after the conflict between Russia and Ukraine, while India purchased large quantities of Russian oil at a deep discount, becoming the largest international buyer of Russian oil in April. Home.
China and Russia did not comment on the matter, but the National Development and Reform Commission of China issued a statement saying that in order to properly cope with the impact of the surge in international oil and gas prices caused by international geopolitical conflicts on our country, relevant companies are being organized to vigorously increase domestic oil and gas exploration and development. Various parties organize resource imports to maintain the safe and stable operation of refineries.
Not long ago, Faisal Ibrahim, Saudi Minister of Economy and Planning, said in an interview with the media that China is a “very important customer” and Saudi Arabia is committed to becoming a reliable energy supplier to China. The two countries are working on infrastructure, logistics Explore cooperation opportunities with manufacturing and other fields.
It is worth mentioning that Reuters mentioned in the report that Saudi Aramco recently increased the price of crude oil exports to Asia and Europe in July.
Among them, Saudi Aramco raised its benchmark Arabian Light crude oil price for Asian buyers by $2.10 a barrel. This means that in July, Asian consumers paid $6.50 more for the company’s crude than the average of benchmark prices in Oman and Dubai at that time.
02 Domestic oil prices may continue to rise next week
China is one of the world’s major crude oil producers. According to the “2021 China Petroleum Economic Research Institute Energy Data Statistics”, China’s annual oil production is second only to the United States, Russia, Saudi Arabia, Canada and Kuwait, making it the sixth largest oil producer in the world; but China’s oil consumption accounts for 10% of the world’s oil consumption. The total proportion is 16.2%, second only to the United States at 18.2%, making it the world’s second largest oil consumer.
Due to huge consumer demand, China’s oil dependence on foreign countries has remained at about 70% in recent years, which means that about 70% of domestic oil demand needs to be met through imports. This also determines that domestic petroleum product prices cannot be separated from price changes in the international market.
Currently, Brent crude oil futures are around $120 per barrel. The latest data from the international statistics website statista shows that in May, the price of Russian Urals crude oil remained at around US$78.8 per barrel.
According to the 21st Century Business Herald, if nothing unexpected happens, domestic refined oil prices will continue to hit a record high next week.
According to monitoring data from commodity information agency Jin Lianchuang, the current domestic retail price limit of refined oil products has reached a new high. It is expected that at 24:00 on June 14, the domestic retail price limit of gasoline and diesel will be raised by more than 300 yuan/ton, continuing to set a new record high.
Refined oil prices continue to rise, and commodities such as commodities will also see further rises.
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