Five trade sources reported on Friday that Saudi Arabia's crude exports to China will reach their highest level in over two years this August. The top exporter is trying to regain its market share with the world's largest importer.

A tally of the allocations made to Chinese refiners revealed that Saudi Aramco, a state oil company, will ship 51 million barrels or 1.65 millions barrels per day to China in August.

Kpler data showed that the supply was 4 million barrels more than July's allocated volume, and at its highest level since April 2023.

China is the largest buyer of Saudi Arabian crude oil in the world.

Sources said that Sinopec, the state refiner, will receive more crude oil in August. The largest refiner in Asia has increased its processing capacity after finishing maintenance on several plants during the second quarter.

Commentary from Saudi Aramco or Sinopec was not immediately available.

Sources said that the allocation to other Chinese refiners was unchanged from the previous months.

Saudi Arabia, which is the largest oil exporter in the world, will be celebrating its national day on Sunday

Prices are going up in August

The price of crude oil for Asian and European consumers is more than $1 per barrel, as the domestic demand is expected rise, which will reduce exports and Chinese consumption may increase.

Asian refiners are already a part of the global market

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After the spot market premiums rose in June due to the Iran-Israel conflict, Middle Eastern producers have agreed to supply term crude for loading in September and August.

The increased supply to China follows the agreement made by the Organization of Petroleum Exporting Countries (OPEC+) and its allies to increase production by

548.000 bpd

In August, the group will be reversing earlier voluntary reductions.

(source: Reuters)