Saudi Arabia dealt a severe blow to Russia in a price war, announcing plans to triple oil supplies to Europe and to sell raw materials at a big discount at $ 25 per barrel. This writes Bloomberg with reference to sources.
As explained by the Agency, Europe is the traditional market of oil for Russia. “The proposal of Saudi Arabia for the supply of oil with an unprecedented discount to the EU makes the European market in the arena of fierce hostilities in the oil war between Riyadh and Moscow,” writes Bloomberg.
The discount, which encouraged Saudi Arabia, is so great that its Arab Light oil to displace Russian Urals and raw material from other suppliers to the European market, if they in return do not offer a discount, said the consulting firm Energy Aspects Ltd.
World oil prices tumbled after Russia and Saudi Arabia from the transaction OPEC+ 6 Mar. The result is less than a week the cost of Russian export oil Urals dropped to $ 16. As of 12 March 2020 it is trading at 32.25 USD per barrel. Benchmark Brent crude has lost about $ 12 abbalives with more than 45 dollars per barrel on March 6 to less than 34 dollars as of March 12. Additional pressure on prices was exerted by the Saudi Arabia’s plans to increase production.
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