Saudi Aramco has reported a 3.4% drop in second-quarter profits due to weaker refinery margins.
China is expected to increase its imports of Saudi Arabian oil by 7% in October, as Saudi Arabia reduces prices for Asian buyers. Next month, Saudi oil exports to China are projected to rise to over 46 million barrels, up from 43 million barrels in September.
The increase in Chinese imports follows a reduction in the official selling price for Saudi Aramco’s Arab Light crude in Asia, making it more appealing to refiners. Arab Light is popular in refining hubs across China, India, Japan, and South Korea due to its balanced properties.
Research from GlobalData indicates that the Asia-Pacific region is set to see the launch of 1,946 oil and gas projects in the coming years. This includes 225 upstream projects, 521 midstream projects, 248 downstream projects, and 952 petrochemical projects.
Last month, Saudi Aramco’s Q2 net income was reported at $29.03 billion, surpassing the median estimate of $27.7 billion from analysts. The decline in profits is attributed to lower crude volumes and weaker refining margins.
Saudi Arabia has long-standing commodity ties with China, despite being overtaken by Russia as China’s leading oil supplier in late 2023. Earlier this year, Saudi chemical manufacturer SABIC announced plans to build a $6.4 billion petrochemical complex in Fujian, China.