Saudi Arabia’s crude oil exports to China are set to decline further in June, as Chinese refiners reduce demand in response to higher prices linked to US –Iran tensions, industry sources said to Reuters.

Saudi Aramco shipped around 10 million barrels (mmbbl) to Chinese customers in May, equivalent to 333,000 barrels per day (bbl/d), according to data from intelligence trade Kpler and Reuters. This marks the lowest level on record, compared with an average of 1.39 million barrels per day (mmbbl/d) exported to China in 2025.

Sources noted that major Chinese refiners, including Sinopec, Sinochem, and Rongsheng Petrochemical, have cut allocations for June. Neither Aramco nor the Chinese companies have yet commented.

Last week, Saudi Arabia set the official selling price (OSP) of Arab Light crude to Asia at a premium of $15.50 per barrel for June, down from $19.50 in May. However, the reduction was smaller than requested by some Chinese buyers, keeping Saudi crude relatively expensive.

Chinese state-owned refiners also lowered operating rates in April, citing continued disruptions to oil flows through the Strait of Hormuz. Saudi crude exports have fallen sharply since the outbreak of war on February 28, with shipments rerouted via the East–West pipeline to the Red Sea port of Yanbu.

Notably, Chinese independent “teapot” refineries are the main buyers of Iranian crude, taking advantage of discounted prices despite US sanctions. The trade is largely conducted through indirect channels and rebranded shipments, making China the largest outlet for Iran’s oil exports.