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Unipec Rejects Saudi Arab Light Cargoes Amid Light-Heavy Imbalance: MEES

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China’s Unipec has rejected the allocation of 3m bbl of Arab Light crude, according to MEES.

  • Unipec had nominated Arab Medium and Arab Heavy for June loading but was allocated Arab Light instead by Aramco.
  • Global crude oil markets have become increasingly imbalanced, with tight supplies of medium and heavy crudes alongside a glut of lighter grades.
  • Rising US production has pushed record volumes of WTI onto global markets, while OPEC+ cuts have largely hit medium and heavy sour output.
  • This has resulted in the premium of lighter grades over heavy sour eroding recently. Meanwhile, a swathe of new refining capacity globally is also boosting demand for heavy sour barrels.
  • This could see even further buying interest among Chinese buyers for heavy sour grades exported via Canada’s newly opened 590k b/d Trans Mountain pipeline expansion.
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China’s Unipec has rejected the allocation of 3m bbl of Arab Light crude, according to MEES.

  • Unipec had nominated Arab Medium and Arab Heavy for June loading but was allocated Arab Light instead by Aramco.
  • Global crude oil markets have become increasingly imbalanced, with tight supplies of medium and heavy crudes alongside a glut of lighter grades.
  • Rising US production has pushed record volumes of WTI onto global markets, while OPEC+ cuts have largely hit medium and heavy sour output.
  • This has resulted in the premium of lighter grades over heavy sour eroding recently. Meanwhile, a swathe of new refining capacity globally is also boosting demand for heavy sour barrels.
  • This could see even further buying interest among Chinese buyers for heavy sour grades exported via Canada’s newly opened 590k b/d Trans Mountain pipeline expansion.