Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list

First cargo of Saudi crude sold to independent refiner arrives in China

LNG | Natural Gas | Natural Gas (North American) | Oil | Crude Oil | Oil Risk

A national climate policy or US energy dominance?


Platts Market Data – Oil

Capital Markets | Commodities | Oil | Crude Oil | Refined Products | Fuel Oil | Gasoline | Jet Fuel | Naphtha | Marine Fuels | Equities | Financial Services | Banking | Non-banks | Private Markets

North American Crude Oil Summit, 3rd annual

Oil | Crude Oil | Refined Products

Crude oil futures dive as COVID-19 cases outside China climb

First cargo of Saudi crude sold to independent refiner arrives in China


Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports

Supply and demand trends, government actions, exploration and technology

Daily futures summary

Weekly API statistics, and much more

Singapore — The first vessel carrying Saudi Arabian crude sold to an independent refiner in China arrived at the port of Longkou on Friday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The 730,000-barrel cargo of Arab Heavy crude was sold on an FOB basis by Saudi Aramco to Chambroad Petrochemical in what was the first sale by the world's top oil exporter to China's emerging independent refining segment.

The cargo was loaded onto the Aframax Alyarmouk on May 15 from Okinawa and arrived into Longkou on Friday, according to cFlow, Platts trade flow software.

Saudi Aramco has leased storage capacity in Okinawa while Chambroad has a 70,300 b/d refinery in Shandong province, around 300 km from Longkou port.

Article Continues below...

Saudi Aramco rarely sells crude in the spot market. It has, however, been supplying to China's state-owned refineries via term contracts. Aramco's move comes as the company lost its spot as China's top supplier last year to Russia, which has seized the opportunity to tap into the independent refinery sector.


More such deals between Saudi Aramco and Chinese independent refineries are likely to follow, traders said in recent days.

Dongming Petrochemical, Hongrun Petrochemical, Lihuayi Petrochemical and Kenli Petrochemical could be the next buyers, sources said.

Aramco has until now hesitated to sell crude oil to the independent refiners as it is not familiar with their credit profiles.

Market observers said earlier that the spot cargo sale to Chambroad is a test for Aramco to run through the financial and logistic procedures involved in selling to an independent refiner in China. The size of the deal and the shorter voyage from Japan to China has helped Aramco minimize its trading risks.

The deal was done by Saudi Aramco's Beijing office with approval from the headquarters in Dhahran, sources said.

Traders said earlier that the cargo for Chambroad has been priced on a FOB Okinawa basis but the exact pricing is confidential though it is likely linked to the OSP for Arab Heavy crude with an unknown differential.

Aramco normally sells crude oil based on its OSPs. Sunshine, the Singapore-based trading arm of Chambroad, is said to have translated the offer to a price linked to ICE Brent crude futures for the parent company, which is a common practice among independent refiners.

--Daniel Colover,
--Oceana Zhou,
--Edited by E Shailaja Nair,