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Page added on October 16, 2015
Russia faces battle with Saudi Arabia over European oil market share
According to Reuters, oil majors Exxon, Shell, Total and Eni have been buying more crude from Riyadh for their refineries in Western Europe and the Mediterranean in the past few months at the expense of Russian oil.
“I’m buying less and less Russian crude for my refineries in Europe simply because Saudi barrels are looking more attractive. It is a no brainer for me as Saudi crude is just cheaper,” a trading source in a major European company told Reuters, who preferred to stay anonymous.
The average price of Russian Urals oil in January – September 2015 was about $ 54.40 per barrel (compared to $ 105.07 for the same period last year). However, an analyst from Russia’s Uralsib bank Aleksey Kokin says Saudi contracts with European companies are looking at benchmarks such as Brent and Dubai, which are priced at $48-49 per barrel.
“And the Saudis are ready to offer a discount of $0.5-1.00 per barrel to this price,” he told Russian online newspaper Gazeta.ru.
According to the analyst, Russia provides nearly 25 percent of the oil used in Europe (Europe consumes about 14 million barrels a day, or 700 million tonnes of oil per year). The Russian share of European oil imports is around 35 percent.
“Saudi Arabia can painlessly provide Europe with an additional 1 million barrels per day,” says Kokin.
This would come at Russia’s expense and its share of the European market would decline by almost a third, he added.
Rosneft CEO Igor Sechin says Saudi Arabia is reducing prices to reach new markets.
“In terms of competition, we are seeing now that Saudi Arabia has even come on the Polish market, where it has never been; it’s supplying raw materials through Gdansk. Actively dumping,” he said.
Russian Energy Minister Aleksandr Novak echoed Sechin’s concern, saying that Saudi Arabia’s entry into the Eastern European markets was “tough competition.”
60 Comments on "Russia faces battle with Saudi Arabia over European oil market share"
onlooker on Sun, 18th Oct 2015 4:12 pm
Well said Greg. I think we at least most of us are truth seekers, else we probably would have done as most do to avoid seeking the truth. So yes agree to disagree but via a mutual code of integrity via sound coherent unbiased arguments.
GregT on Sun, 18th Oct 2015 4:14 pm
Boat is a perfect example of someone who is not interested in the truth. After hundreds of links have been provided for him to consider, he still sticks to his narrative of disinformation and outright lies. How can anybody expect anything to change for the better, when people are not willing to be honest?
onlooker on Sun, 18th Oct 2015 4:16 pm
I second that!
Davy on Sun, 18th Oct 2015 4:20 pm
Greg, if you think I am a liar tell me now because that is some serious business. It is one thing to have a difference in opinions and we know what ours are it is another to say someone is a liar. If you think me a liar then we are enemies from this day forward and I will treat you with contempt. That is a simple answer also I don’t need a Canadian lecture on good n evil with Canadian bacon on the side.
GregT on Sun, 18th Oct 2015 4:28 pm
Davy,
You’re a smart guy. Use your intellect instead of your emotions. I never called you a liar. Not once.
GregT on Sun, 18th Oct 2015 4:36 pm
And furthermore Davy. I really don’t understand why this is so difficult for you to figure out?
What’s with the constant American/Canadian, American/Russian, American/Chinese, American/Phillipines crap? I am a human being first Davy. I had no choice in where I was born, and I really couldn’t care less about your little American competition complex. Get over it already. It’s getting really old.
Davy on Sun, 18th Oct 2015 4:43 pm
Greg, let’s drop it because we are not connecting. I don’t think we were meant to understand each other. I will make an effort to be friendly but that is as close as i can get with you. I think we both crossed some lines and no longer have full respect.
Folks if you are wondering I have been talking with and at Greg for over two years now. I think that deserves a little board time. We are finished now.
GregT on Sun, 18th Oct 2015 4:53 pm
We are not connecting Davy, because you identify yourself with a flag, and I identify myself as an individual. I am not having a conversation with Davy the human being. I am having a conversation with Davy the American. I find it very sad that you are incapable of seeing the difference.
Boat on Sun, 18th Oct 2015 5:17 pm
apeman,
Do you really have time to proof read my comments as you plan to take out the entire Canadian middle class? Or you just gonna eat another tub of icecream and hope the middle class of Canada dissapears.
apneaman on Sun, 18th Oct 2015 5:25 pm
Proof read? I guess some find reading laborious and time consuming. What am I, like the 8th or 9th person to point out your remedial writing skills and that particular error? Where do you get the idea that I “plan” to take out the Canadian middle class? I said I don’t give a shit and it’s a self inflicted wound. Fuck are you ever thick. PVC brain.