Will Cunliffe
Research Analyst, The Officials
China tightens its belt
China's appetite has diminished, lowest Saudi allocations since we began tracking them
China's appetite has diminished, lowest Saudi allocations since we began tracking them
China has seriously cut back on crude purchases and that’s hitting the Saudi allocations for June. 16 mil bbl! The lowest allocations since we began tracking them, as Unipec doesn’t even get a single barrel! Although the Asia OSP cut from May to June was relatively small (-$4), the April to May increase was very low compared to what structure implied, leaving the aggregate change relatively low. Despite this, China’s appetite has seriously dried up.
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