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      China Purchases 10 Million Barrels of Saudi Crude in Uncommon Spot Tender

      In a notable move, major Chinese refiners have acquired approximately 10 million barrels of Saudi crude oil through a rare spot tender. The buyers include prominent companies such as PetroChina, Sinochem Group, Unipec, and Rongsheng Petrochemical, with the cargoes set for prompt loading. This purchase primarily consists of Arab Medium and Arab Heavy grades, marking a significant shift in China's oil procurement strategy.

      This acquisition comes at a time when Saudi crude shipments to China have been significantly lower than pre-war levels, largely due to geopolitical tensions related to the US-Israeli conflict involving Iran. As a result, July loadings from Saudi Arabia to China are projected to be around 12 million barrels, the lowest in recent history. The decision to purchase 10 million barrels on the spot market nearly doubles the expected volume for July, indicating a strategic response to current market conditions.

      Typically, Chinese refiners secure Saudi crude through long-term contracts, but the recent trend of spot purchases suggests a shift in strategy. The refiners are opting for discounted spot cargoes rather than committing to higher-priced contract volumes. This change reflects the ongoing competition in the Asian market, where Saudi Arabia is adjusting its pricing to maintain market share against rivals like Russia and Iraq. The willingness of Saudi Arabia to offer deeper discounts highlights its focus on sustaining volume to its largest customer amid fluctuating geopolitical dynamics.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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