China's Xi Jinping may visit Saudi Arabia next week with oil likely to top the agenda after Biden fails to secure a big production boost, report says

[onebyone]

Chinese President Xi Jinping and Crown Prince Mohammed bin Salman.Lintao Zhang/Getty Images

• Xi Jinping is expected to visit Saudi Arabia next week, according to the Guardian.
• The Chinese leader will likely be received with elaborate ceremonies as relations with Saudi Arabia grow closer.
• Xi's trip follows a visit to the kingdom from US President Joe Biden last month.

Chinese President Xi Jinping is expected to visit Saudi Arabia next week, according to the Guardian, with oil likely to be a key topic.

The Chinese leader's visit will feature much more grandeur compared to President's Joe Biden trip there last month, reflecting warmer ties with Beijing in recent years and chiller US ties, the report said.


A visit by Xi to the world's top oil exporter would come amid upheaval in global energy markets following Russia's invasion of Ukraine.

Beijing and Riyadh already maintain strong trade ties, and the two countries even reportedly discussed making oil deals in yuan instead of dollars earlier this year.

But Russia has recently overtaken Saudi Arabia as China's biggest oil supplier. China has been taking advantage of cheaper crude from Russia as sanctions forced Moscow to sell at steep discounts to customers outside of Europe.

In recent weeks, Saudi Arabia has set record-high prices for the crude it sells to Asia, while Russia has regained its pricing power in Asian oil markets.

Meanwhile, Biden concluded his visit to Saudi Arabia last month without a deal for a large production increase that would lower oil prices and ease US inflationary pressures. Instead, OPEC+ announced a minuscule output hike of just 100,000 barrels per day.

Xi is also planning a face-to-face meeting with Biden in November during a visit to Southeast Asia, according to the Wall Street Journal. That would follow a phone call they had ahead of House Speaker Nancy Pelosi's visit to Taiwan last week.

China's Xi Jinping may visit Saudi Arabia next week with oil likely to top the agenda after Biden fails to secure a big production boost, report says

A visit by Xi to the world's top oil exporter would come amid upheaval in global energy markets following Russia's invasion of Ukraine.

finance.yahoo.com

 

[Daniel808]

This will be the first overseas trip of Xi Jinping after 2020 pandemic.

They will talk about Saudi Arabia Application to Join BRICS+ Currency Basket or Saudi Arabia Proposal to use Chinese Yuan in Oil Trade with China (Petro-Yuan)

https://twitter.com/x/status/1558478831056568320

 

[FuturePAF]

Hopefully a visit can lead to that oil refinery finally being built in Gwadar (the long awaited $10 billion refinery long proposed). If an oil pipeline could be built from Saudi through Oman to Gwadar, it would hedge against Iranian threats to close the Strait of Hormuz, and help recoup the investment made in Gwadar.

 

[casual]

petroyuan here we come

 

[SoulSpokesman]

@FuturePAF

Hopefully a visit can lead to that oil refinery finally being built in Gwadar

Hain! How does a Chinese Prez visit to KSA result in an oil refinery being built in Gwadar?

If an oil pipeline could be built from Saudi through Oman to Gwadar,

Why built a refinery there? Why not simply load into supertankers in a port in Oman and take it straight to China?

Regards

 

[FuturePAF]

@FuturePAF

Hopefully a visit can lead to that oil refinery finally being built in Gwadar

Hain! How does a Chinese Prez visit to KSA result in an oil refinery being built in Gwadar?

If an oil pipeline could be built from Saudi through Oman to Gwadar,

Why built a refinery there? Why not simply load into supertankers in a port in Oman and take it straight to China?

Regards

Sure, they could do that, but considering the Chinese investment in Gwadar, building out the petrochemical industry in a place close to markets and with no taxes is good business for the Saudis and Chinese.

It’s also good for the Saudis, Omanis, and Chinese as well as the Pakistanis if a pipeline can be laid to Pakistan and up to China to diversify away from Central Asian and Iranian oil supplies. Expensive up front but gets around the Malacca Dilemma.

Oil City Gwadar – Cpec Investments

cpecinvestments.co.uk

 

[MH.Yang]

Sure, they could do that, but considering the Chinese investment in Gwadar, building out the petrochemical industry in a place close to markets and with no taxes is good business for the Saudis and Chinese.

It’s also good for the Saudis, Omanis, and Chinese as well as the Pakistanis if a pipeline can be laid to Pakistan and up to China to diversify away from Central Asian and Iranian oil supplies. Expensive up front but gets around the Malacca Dilemma.

Oil City Gwadar – Cpec Investments

cpecinvestments.co.uk

China is duty-free for goods from Pakistan, not Saudi Arabia.

If Saudi Arabia's oil is tax-free, the oil fields in China will not be competitive at all.

 

[Song Hong]

I guess one important agenda is BRICS currency.

Targeting the US Dollar’s Hegemony: Russia, China, and BRICS Nations Plan to Craft a New International Reserve Currency – Economics Bitcoin News

Russia and BRICS members revealed leaders in the five major emerging economies plan to create a new “international reserve currency.”

news.bitcoin.com

 

[FuturePAF]

China is duty-free for goods from Pakistan, not Saudi Arabia.

If Saudi Arabia's oil is tax-free, the oil fields in China will not be competitive at all.

Perhaps oil products produced in Gwadar would be for the export market. But I see your point, the Chinese domestic industry won’t be undercut by the central government.