Sinopec to Reduce Crude Imports from Saudi Arabia in May

Sources said that Sinopec would reduce its crude oil import volume from Saudi Arabia by 40% in May. First, the crude oil prices offered by Saudi Aramco are higher than expected. Some refineries think the prices are not acceptable. Second, some refineries under Sinopec shut down some of their units for maintenance from April to June, so the crude oil demand will slip. Finally, China’s crude oil demand growth rate is at a high level, while Saudi Arabia is carrying out the crude output reduction agreement. The crude oil supply from Saudi Arabia will not meet the newly added crude oil demand in China.