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Declining Attractiveness of Russian Oil in Asian Markets as Saudi Arabia Reduces Prices

Russian oil may become even more unattractive to buyers in Asia.

Following the United States’ efforts to enforce price ceilings on Russian oil, buyers in Asia and supply chain participants have become increasingly cautious when dealing with Russian crude.

In the future, Russian oil may further lose its attractiveness on the Asian market, especially given the news that appeared on Sunday about Saudi Arabia’s decision to reduce oil prices on all world markets, including Asia.

According to Bloombergthe Saudi state-owned company Saudi Aramco lowered the price of its main Arab Light brand for supplies to the Asian market by $1.5-2 per barrel.

The price reduction also affected February deliveries for the Mediterranean, northwestern Europe and the North American market.

The agency’s material notes that Riyadh took such a step taking into account the increase in supplies of American oil and related concerns about a possible supply surplus. Against the backdrop of a reduction in export volumes by states belonging to the OPEC+ cartel, the American side by the end of 2023 was close to setting a world record for oil production volumes.

Meanwhile Reuters reports that imports of Iranian oil to China have decreased due to rising prices for Chinese buyers.

Industry representatives admit that the reduction in oil supplies to China may be caused by the easing of American sanctions against Venezuela, as a result of which oil from this South American country began to be supplied to the United States and India.

Let us recall that in December India significantly reduced oil supplies from Russia, as discounts on cargo became unattractive for Indian buyers.

Let us remind you that analysts pointed to “strange actions” of Russian tankers over the past month, which may indicate increasing disruptions in oil supplies from the Russian Federation.

Author: Artem Malinovsky

2024-01-07 16:29:36
#Saudis #planted #pig #Russia #oil #market

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