NNA - Saudi Aramco (2222.SE) has notified at least five North Asian refiners, mostly Chinese, that it will be supplying less than contracted volumes of crude oil in July, several sources with knowledge of the matter said on Thursday.

The cuts to Chinese refiners come as more cheap Russian oil heads to the world's top oil importer, which has refused to condemn Russia's invasion of Ukraine. Chinese oil demand has also been depressed by COVID-19 restrictions in the past two months.

In addition, demand for Saudi crude has been climbing in Europe where the European Union has moved to phase out Russian crude and European buyers are racing to find other suppliers.

"Saudi crude supply is very tight in the market," a Singapore-based trader said.

Four major Chinese refiners and one in North Asia will be receiving less Saudi crude oil loading in July, the sources said.

Another three North Asian refiners and one South Asian refiner are receiving full allocations, they said.--REUTERS

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