Saudi oil supplies to China to remain at one-year high in June — Reuters

Reuters reports that Saudi Arabia’s crude flows to China are set to remain at a one-year high in June, reaching 48 million barrels. 

Purchases by Sinochem and private companies, including Hengli Petrochemical and Rongsheng Petrochemical, will rise next month compared to May. However, Saudi crude supply is set to reduce for the leading Asian refiner Sinopec and a state firm CNOOC, the news agency says. 

The experts project Saudi crude exports to China to hit 48 million barrels this month, since the Kingdom slashed May oil prices for Asian buyers. By comparison, China purchased 35.5 million barrels of crude from Saudi Arabia in April.

The Kingdom expects high demand from Asian countries in June. Hence, the price of Arab Light was raised by $0.20 per barrel over May prices. 

Meanwhile, China accelerated its oil imports in March and April. Analysts believe Chinese companies are actively building up inventories amid uncertainty related to future restrictions on crude oil supplies.