Saudi Aramco has signed a deal with Chinese refining group North Huajin Chemical Industries Group to supply crude oil, according to a report.
Reuters reported citing sources that Aramco will supply Arab Extra Light crude to the Chinese state-controlled refiner, which will use it to increase naphtha production for petrochemicals feedstock.
The deal comes after Russia overtook Saudi Arabia as the biggest supplier of crude to China.
Saudi Arabia agreed to cut crude production by 486,000 barrels a day (b/d) as part of an agreement with Opec and some non-Opec countries to reduce supply to boost prices. The agreement stands for the first six months of 2017.