Chinese Refiners Skip Saudi Crude Term Cargoes for August

At least two Chinese refiners have not nominated term crude cargo deliveries from Saudi Arabia for August 2026. A few others have not received provisional allocation volumes for the month. Traders with direct knowledge of the supply arrangements told Bloomberg on Tuesday that the decisions follow weak demand in China, competition from other producers, and continued disruptions at the Strait of Hormuz.

Saudi Arabia has allocated between 10 million and 20 million barrels of crude per month to China since the Iran war began. That volume is less than half the average monthly allocation of about 40 million barrels prior to the conflict, OilPrice.com reported. Saudi Aramco set a record-high premium to benchmarks for term supply loading for Asia in the early weeks of the war.

Early in July 2026 the kingdom cut the official selling price for crude loading for Asia next month by the most in two decades. Arab Light crude will be sold in August 2026 at $1.50 per barrel below the Oman/Dubai average benchmark. Other Gulf exporters are offering larger discounts and loadings from outside the Strait of Hormuz, which lowers freight costs for buyers.