Column: China crude demand rising, but costly Saudi oil is less desirable – Reuters.com

Column: China crude demand rising, but costly Saudi oil is less desirable – Reuters.com

LAUNCESTON, Australia, Feb 9 (Reuters) - The surprise increase in the price of Saudi Arabian crude oil for March-loading cargoes is being viewed by the market as a bullish signal that Chinese demand is ramping up as the world's biggest importer reopens and stimulates its economy.

There are certainly increasing signs of revival in China's fuel demand, with passenger flights and road traffic rising strongly and indications that the country's huge refining sector is accelerating processing rates.

It seems quite possible that China will be importing more crude in coming months, but the question for Saudi Aramco (2222.SE) and the broader oil-trading community is whether they will be buying relatively expensive Saudi oil, or whether Chinese refiners will successfully source cheaper alternatives.