Saudi Aramco Bets on Continuous Growth of Chinese Oil Demand

Saudi Aramco Bets on Continuous Growth of Chinese Oil Demand

The world’s largest crude oil exporter, Saudi Arabia, is betting big on the growing market for crude China, as Saudi oil giant Aramco is strengthening its downstream presence and crude supply market share in the world’s top importer.

Saudi Aramco announced this week two major refinery and petrochemical deals in China, which not only give the world’s largest oil firm a share of the Chinese downstream market but also an additional export outlet for 690,000 barrels per day (bpd) of Saudi crude in China.

With the two agreements, Saudi Arabia is betting on continuous growth in Chinese oil demand on the one hand. On the other hand, the Kingdom is looking to boost its market share in the world’s top oil importer, where its partner in the OPEC+ pact, Russia, has gained market share with cheap crude after the Russian invasion of Ukraine and the sanctions on Moscow that followed.

Saudi Arabia and Russia have been neck and neck on the Chinese oil market for years, but the fight for market share has become more contested since the war in Ukraine began as Russia pivoted to Asia and now bets on China and India as the key buyers of its crude, often offered