Saudi production hike heading for Asia
Riyadh’s plan to boost market share by unleashing a tidal wave of crude onto the Asian market would be a boon for local refiners as the region recovers from Covid-19
The fallout from collapsed Opec+ negotiations escalated on Sunday with the announcement that Saudi Arabia will slash its official Asian selling prices to unprecedented levels. April-loading cargoes sent east from the Kingdom will now be reduced by between $4-6/bl. The ploy showcased Saudi Arabia’s aggressive new strategy following its failure to convince Opec partners—notably Russia—to agree to further crude production limits. “The gauntlet has been thrown down,” says Shin Kim, head of supply and production, analytics, at pricing agency Platts. “[It] signals the start of an oil price war. Massive discounts leave no doubt about Saudi Arabia’s intention to regain market share from higher cost
Also in this section
7 May 2024
Ample stocks and a soft demand outlook will limit how much LNG Europe can import this year
3 May 2024
Upcoming elections are likely to deliver a win for the party of president Andres Lopez Obrador, but analysts differ over to what degree his successor will stick to his energy policies
2 May 2024
Faster-than-expected economic growth fails to mask macro imbalances and shifting structural oil product trends
1 May 2024
Energean CEO Mathios Rigas looks to results of critical Anchois appraisal well