Chinese refiners asked for less Saudi crude oil for February, people with knowledge of the matter said on Thursday, even as the world’s top oil exporter conducted its biggest price cut in 13 months.

About 38.5 million barrels were nominated by Chinese refiners for February-loading, down slightly from about 40 million barrels for January, trading sources said.

State oil company Saudi Aramco on Sunday cut the official selling price (OSP) for February-loading Arab Light to Asia by $2 a barrel from January to $1.50 a barrel over Oman/Dubai quotes, a level last seen for November 2021.

“The price cut came too late. Refineries had set plans for oil purchase and production before Saudi revealed the OSPs,” said one trader with a North Asian refiner.

Saudi oil prices were about $2 a barrel more expensive than crude supplied by other regional producers last month, prompting refiners to seek fewer term-cargoes from Saudi Arabia and to buy cheaper alternatives from the spot market.

Aramco has notified at least five North Asian buyers that it will supply full contractual volumes in February. The de facto leader of the OPEC+ group committed to extend its voluntary output cut into the first quarter of 2024.
Source: Reuters (Reporting by Muyu Xu. Editing by Jane Merriman)