Reuters expects Saudi Arabia's oil supplies to China to decline in April

Reuters expects Saudi Arabia’s oil supply to its biggest customer, China, to decrease next month to the lowest level in more than a year. The forecast drop is partly connected with maintenance at Chinese refineries owned by local Sinopec.

According to the news agency, Saudi Arabia is to export about 35.5 million barrels of crude oil to China in April. The previous month’s supply volume amounted to 41 million barrels.

China’s demand for Saudi oil decreased despite the intention of OPEC+ to increase its production in April. In addition, China's Sinopec plans to reduce its processing capacity by 700,000 barrels per day from mid-March to May, Reuters reports.

Meanwhile, Asian oil markets continue to stabilize after the imposition of US restrictions on supplies from Russia and Iran. According to Reuters estimates, China's oil imports from these countries will recover in March, as tankers which are not under US restrictions replaced embargoed vessels.