Saudi Arabia continues to reduce oil prices even after the OPEC deal
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Saudi Arabia continues to reduce oil prices even after the OPEC deal

13 April , 18:29EconomyPhoto: bcacf.com
Saudi Arabia does not seek to end the “price war” in the oil market even after the OPEC+ member countries managed on Sunday to agree on a record-breaking reduction in raw material production.

Moscow capitulated, agreeing to remove twice as much “black gold” from the market as Riyadh, but even this could not pacify the kingdom’s oil appetites. Saudi Saudi Aramco will continue dumping in the markets of Asia and Europe - where its raw materials compete with Russian, writes Finanz.

In the May price list, the company not only upheld the unprecedented discounts on shipping to North-Western Europe, but also increased them for Mediterranean and Asian deliveries.

So, in the Asian market, the Arab Super Light brand will drop $ 5.5 - for the first time in history, it will be trading at a discount of $ 3.65 to the price of the Oman / Dubai benchmark. Arab Extra Light fell by 44.3, Arab Light - by $ 4.2 (for South European countries, the discount on this variety doubled - from $ 5.8 to $ 10.3 to Brent). “Lightened” the price and heavy grades - Arab Medium and Arab Heavy threw off $ 3.35 and $ 2.95, respectively.

This is not about futures holding around $ 30, but about spot prices fixed by the Dated Brent marker. At the end of last week, its average price was $ 22.88. That is, ultralight Saudi oil will be able to be delivered to the Mediterranean for $ 10.58.

Arab Light will increase the discount from $ 8.6 to $ 10.3 per barrel, which provides a price of $ 10.58. Heavy grades will fall in price by $ 11.4.

Not all markets, however, continue to be subject to “discount shelling” by Saudis, waging a targeted price war. The fighting has subsided in the US market - there oil is getting more expensive from $ 2.5 to $ 4.2 per barrel. This is not surprising - US President Donald Trump previously supported Riyadh in the intention to pump even more raw materials in order to oust Moscow from the oil arena. For his support, Trump asked the Crown Prince of the Kingdom of Mohammed bin Salman not to lower the oil price too low so that it could not affect the American shale producers.

Russia, which is witnessing a collapsing ruble, a catastrophic drop in demand for its own oil and a forced reduction in production by eight times, cannot but admit that it has missed. obviously, the only and last chance is to agree to a reduction in production of 0.3 million barrels per day.

“We will long enough get out of the situation that is developing today in the oil market,” said Energy Minister Alexander Novak.

The economist Mikhail Krutikhin evaluated the OPEC deal as follows:

“It was obvious that Russia and Saudi Arabia would come to some kind of an agreement. But it was expected that our countries would split the quota for oil cuts roughly evenly, but it suddenly turned out that for some reason Russia was taking the bulk of the reduction in the production.

Saudi Arabia is also cutting back, but compared with us quite a bit. This came as a surprise. There is a version, especially in the Arab East, that this is such a form of punishment for Russia for its behavior..."

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