OPINION | Saudi crude discounts not enough to upend competition as price war ensues

China moves

A key market for Aramco is China, the world's biggest crude importer, and one where the Saudis have lost market share.

China's imports from Saudi Arabia are estimated at 705,000 bpd in July, up from a 12-year low of 626,300 bpd in June but still less than half the 1.48 million bpd average for the three months leading up to the Iran conflict.

It was no surprise that China cut back on imports from Saudi Arabia as Aramco massively hiked its OSPs in response to the effective closure of the Strait of Hormuz, which tightened supply of Middle East crude.

Aramco was able to re-route much of its exports to its Yanbu port on the Red Sea, but buying this oil came at a massive cost for Asian refiners, with the OSP for Arab Light reaching a record high of $19.50 above the Oman/Dubai average for May-loading cargoes.