Saudi Aramco has notified at least five North Asian refiners, mostly Chinese, that it will be supplying less than contracted volumes of crude oil in July, several sources with knowledge of the matter said on Thursday.
Report informs, citing Reuters, that the cuts to Chinese refiners come as more cheap Russian oil heads to the world’s top oil importer. Chinese oil demand has also been depressed by COVID-19 restrictions in the past two months.
In addition, demand for Saudi crude has been climbing in Europe where the European Union has moved to phase out Russian crude and European buyers are racing to find other suppliers.