Saudi Oil Sales to China to Halve as Hormuz Crisis Lifts Prices

Saudi Arabia’s crude sales to top importer China are set to halve next month as the war in the Middle East upends flows and lifts prices, according to traders familiar with the matter.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Saudi Arabia’s crude sales to top importer China are set to halve next month as the war in the Middle East upends flows and lifts prices, according to traders familiar with the matter.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The world’s biggest exporter is set to ship around 20 million barrels of oil to its customers in China for May, the traders said, asking not to be identified as they aren’t authorized to speak publicly. That’s down from roughly 40 million barrels allocated for loading in April.Saudi Aramco declined to comment.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.The cut in sales comes after Aramco raised official selling prices of its crude to a record, as the Iran war resulted in the effective closure of the Strait of Hormuz and upended energy flows. Saudi Arabia has an outlet for its oil at the country’s Yanbu port in the Red Sea, but it’s not able to funnel all of the supplies that used to go through the Persian Gulf using that link.The war in the Middle East, now in its second month, shows no signs of easing, after talks between the US and Iran in Pakistan failed to yield an agreement over the weekend. In an escalation, President Donald Trump threatened to blockade the Strait of Hormuz, preventing all maritime traffic from entering and exiting Iranian ports from 10 a.m. Washington time on Monday.Yanbu has an export capacity of around 5 million barrels a day, less than the 7.2 million barrels a day the Saudis shipped before the war, mainly from facilities within the Persian Gulf. Asian refiners were only offered Arab Light grade crude via the Red Sea port, traders said.The prices of Dubai and Oman — two benchmark crudes used to set Saudi Arabian oil — have become increasingly erratic as the war created a shortage of the barrels used to assess them.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.