Saudi oil supply to China to rise by 35% in May — Reuters

According to Reuters, Saudi Arabia will supply China with about 48 million barrels of oil in May. By comparison, April’s volume is just above 35 million. The projected amount is the highest since 2024, and it also represents the first rise this year, the agency reports.

An increase in Saudi oil supply to China was driven by a sharp drop in the prices. Late last week, Saudi Aramco announced a premium cut of the Arab Light oil grade to $1.20 per barrel. This is $2.30 lower than the April price, which contributed to higher demand for the commodity among Asian buyers, Reuters notes.

Arab Light has fallen in price to a 4-year low amid the unexpected OPEC+ decision to accelerate the increase in oil production. In May, about 411,000 barrels per day will be added to the market.

Anh Pham, senior analyst at LSEG, believes that the increase in crude supplies from Saudi Arabia will help stabilize the market, which is experiencing declining fuel exports from Venezuela and Iran. Both countries are currently under US restrictions.