Oil-Pricing Skirmish Heats Up as Chinese Trader Seeks Saudi Cuts
- Unipec plans 40% cut in Saudi June oil volumes on costly OSPs
- High prices may encourage alternative flows from U.S., Russia
Source: Saudi Aramco
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The trading unit of one of the world’s biggest refiners is displeased with Saudi Arabia’s oil pricing for a second straight month, which may benefit crude sales from the U.S. and Russia.
Unipec, which buys crude for giant Chinese processor Sinopec, is seeking a 40 percent cut to Saudi oil volumes versus supplies available under long-term contracts for June loading, according to a senior official at the trading company. That’s because the world’s biggest crude exporter has set prices too high for grades such as Arab Light and Arab Medium, he said, asking not to be identified because of internal policy.