Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    SCZONE showcases investment opportunities to eight Japanese companies    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Saudi Arabia boosts term crude sales to China as oil use surges

BEIJING/SINGAPORE: Saudi Arabia will boost contract crude sales by 10 percent to Asia's biggest refiner Sinopec this year as the world's top oil exporter cements its share of the world's fastest growing fuel market.
Riyadh is boosting exports to China for a third consecutive year, ensuring needs from the world's second-largest oil consumer are met, even as the kingdom stuck more closely to the late 2008 OPEC production targets than many of the group's other members.
It is unclear whether Saudi Arabia is increasing overall production to supply more to Sinopec or diverting supplies from customers elsewhere.
China has driven global demand growth for the last decade and is coming close to eclipsing the United States as Saudi Arabia's biggest buyer.
China Petroleum & Chemical Corp (Sinopec) would import more than 550,000 barrels per day from Saudi Arabia in 2011, and China's total term contract volume would rise to a new record of at least 970,000 bpd, according to Reuters calculations based on data from industry sources.
That compares to term contract volumes of around 920,000 bpd in 2010, although actual imports were a little less and came in at 892,800 bpd, according to customs data.
China's rising crude purchases come as Saudi Arabian oil minister Ali Al-Naimi said on Monday this year could mark a turning point as demand from developing economies takes as big a share of the market as industrialized countries.
Naimi also said global oil demand was expected to rise between 1.5 million and 1.8 million bpd this year, a higher forecast than that given by the Paris-based International Energy Agency.
"If Minister Al-Naimi sees strong demand, it is a strong signal that Saudi Arabia sees little concern in raising supplies. That is the real message," JP Morgan analysts led by Lawrence Eagles said in a report on Monday.
The growth in oil demand would mainly be driven by Asia — particularly China and India — as well as the Middle East and Latin America, Naimi told an industry conference in Riyadh.
Sinopec took at least 500,000 bpd of Saudi crude last year. In addition to that, Aramco supplies about 240,000 bpd to the Fujian refinery, its joint venture with Sinopec. That volume would be steady this year, sources said. Saudi crude accounted for about a quarter of Sinopec's 3 million bpd of crude imports last year.
China's two other state oil refiners - Sinochem and PetroChina Co Ltd - will import 180,000-190,000 bpd in 2011, also steady from 2010. The IEA forecasts China would need an additional 450,000 bpd in 2011, about a third of the forecast 1.41 million bpd rise in global oil consumption. China's economy grew 10.3 percent in 2010, driven by robust domestic demand and exports.
China's total imports from Saudi Arabia of close to 1 million bpd this year would put Beijing just behind the kingdom's top client the United States, which in the first 10 months of 2010 imported an average 1.09 million bpd, according to the country's Energy Information Administration (EIA).
China's total crude imports climbed to a record 4.79 million bpd in 2010, up by almost 18 percent from a year earlier.
In December, China's implied oil demand surged 19 percent to a record 9.6 million bpd, averaging 8.65 million bpd for the whole year, according to Reuters calculations based on preliminary official data.


Clic here to read the story from its source.