Saudi Oil Exports to China Will Surge in May

By Irina Slav - Apr 11, 2025

Crude oil exports from Saudi Arabia to China are expected to increase substantially next month, thanks to the sizable price cut by the Saudis, Reuters reported today, citing unnamed sources.

Volume allocations to Chinese refiners reveal that Saudi exports in May will rise to 48 million barrels from the 35.5 million barrels scheduled for delivery this month. Saudi Arabia cut the official selling prices for its oil sharply ahead of a production boost set for next month. The sharpest cut was made for the price of oil sold in Asia, with flagship Arab Light set to be $2.30 per barrel cheaper in May, at a premium of $1.20 per barrel over the Dubai/Oman benchmark.

This is the deepest price cut in over two years, Reuters reported earlier in the week. The move comes amid the oil price rout that followed President Trump’s announcement of a flurry of tariffs on all trade partners, notably China, which is the world’s largest oil importer. China retaliated promptly with its own tariffs on all U.S. imports, including oil and gas, adding pressure to prices.

Saudi Arabia is the second-largest oil supplier to China after Russia. Meanwhile, China’s imports from Iran increased substantially in March as importers sought to stock up ahead of a possible further tightening of U.S. sanctions on Tehran. According to data from Kpler, Iranian crude accounted for 13% of China’s total imports of crude last month. In absolute terms, Iranian imports rose to 1.37 million barrels daily, up from 747,000 barrels daily in February.

On the other hand, U.S. crude oil exports to the world’s largest importer have shriveled and are about to stop altogether. So far this year, American crude oil has accounted for only about 1% of the imports of China, the world’s top crude importer. But the tariff war that U.S. President Donald Trump launched against China in early February dissuaded the remaining Chinese buyers from buying U.S. crude oil.

By Irina Slav for Oilprice.com

Sinopec and Aramco Expand Saudi JV with Petrochemical Mega-Project

By Editorial Dept - Apr 10, 2025

In a major move to boost petrochemical output and capture a greater share of global markets, China Petroleum and Chemical Corp (Sinopec) and Saudi Aramco have signed a Venture Framework Agreement to expand their joint venture in Saudi Arabia.

The agreement, announced Wednesday, will see the two energy giants move forward with engineering studies for a fully integrated petrochemical complex at the Yanbu Aramco Sinopec Refining Company (Yasref), which is 62.5% owned by Aramco and 37.5% by Sinopec.

The planned project will feature a large-scale mixed feed steam cracker with a capacity of 1.8 million metric tons per year, alongside a 1.5 million ton-per-year aromatics complex. These additions will be integrated into Yasref’s existing facilities, maximizing operational synergies and value creation.

“The agreement further deepens and elevates our strategic partnership with Sinopec,” said Aramco President and CEO Amin H. Nasser. “The expansion project solidifies our commitment to product innovation and diversification.”

The deal comes as global petrochemical markets face a structural shortage in high-end chemical products, a gap that China’s producers are looking to fill. Chinese petrochemical companies have increased investments in innovation and high-value materials, aiming to shift away from commodity products toward more specialized offerings.

According to Pang Guanglian, deputy secretary of the China Petroleum and Chemical Industry Federation, China’s petrochemical sector already holds 45% of global sales and is rapidly moving toward a majority share. He added that despite trade frictions and global uncertainties, international demand for Chinese petrochemical products remains robust.

Driven by strong domestic supply chains and a push for cleaner technologies, Chinese state-owned firms—including Sinopec, CNPC, and CNOOC—are expanding globally. The industry is also working to reduce emissions by optimizing processes, increasing renewable energy use, and shifting toward sustainable raw materials such as biomass.

The expansion of Yasref marks another step in Aramco’s strategy to strengthen its downstream portfolio while positioning Saudi Arabia as a global leader in integrated energy and chemicals.

Oilprice.com