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Sources in the Middle East Petroleum Industry Saudi Aramco is expanding oil storage space in Okinawa, Japan, by nearly a third to help drive supply to new buyers in China.
Saudi Aramco has been storing oil in Okinawa since this year, using supertankers to deliver it to Japan and then selling smaller cargoes to Asian buyers.
This month, Saudi Aramco tentatively sold a batch of Arabian heavy crude oil to an independent Chinese refinery for shipment from Okinawa for the first time. Saudi Arabia also plans to set up oil storage space in China
The two countries signed a memorandum to evaluate the matter earlier this year. Some industry insiders said
Generally speaking, they have to compete in China and Asia. Russia uses oil pipelines to supply crude oil to be closer to customers. Owning oil storage facilities in China and expanding oil storage space in Okinawa is a way to strengthen competition.
Saudi Arabia was still China's largest supplier during the month, but in terms of single-month data, Saudi Arabia has only been the largest supplier for three months. Russia and Angola have taken the leading position for most of this year, and their crude oil exports to China have grown by and above respectively. Saudi Arabia’s crude oil sales to China doubled from 10,000 barrels per day in 2017 to over 10,000 barrels per day in 2018 but did not grow much after that.
Dalian Precious Metals Trading Center National Recruitment Agent Contact Number
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Contact Person: Mr. Zhang