Saudis Gain Edge in Oil-Sales Contest by Whacking Prices - Bloomberg:
The uneasy truce that settled over oil markets this month as some of the world’s largest producers began cutting output belies the raging competition among exporters seeking to preserve their share of a diminished market.
Saudi Arabia, the world’s biggest exporter, appears to be winning the fight for sales as it slashes prices for its crude. Producers globally are struggling to retain customers as the coronavirus destroys demand for fuel. After flooding the market in April, producers are now scaling back shipments as part of the deal by OPEC+ suppliers to soak up the glut in oil.
For evidence of where the Saudis have been winning, look no further than last month’s crude exports. Saudi Arabia was the only one of OPEC’s top four producers to boost sales to India in April, according to Bloomberg tanker tracking. The kingdom’s shipments to China doubled, and its exports to the U.S. reached 1 million barrels a day, the most since August 2018.
“The Saudis are doing very well,” said Ahmed Mehdi, a research associate at the Oxford Institute for Energy Studies, referring to the battle for buyers. “Aramco has been aggressive in protecting market share in Asia.”
The uneasy truce that settled over oil markets this month as some of the world’s largest producers began cutting output belies the raging competition among exporters seeking to preserve their share of a diminished market.
Saudi Arabia, the world’s biggest exporter, appears to be winning the fight for sales as it slashes prices for its crude. Producers globally are struggling to retain customers as the coronavirus destroys demand for fuel. After flooding the market in April, producers are now scaling back shipments as part of the deal by OPEC+ suppliers to soak up the glut in oil.
For evidence of where the Saudis have been winning, look no further than last month’s crude exports. Saudi Arabia was the only one of OPEC’s top four producers to boost sales to India in April, according to Bloomberg tanker tracking. The kingdom’s shipments to China doubled, and its exports to the U.S. reached 1 million barrels a day, the most since August 2018.
“The Saudis are doing very well,” said Ahmed Mehdi, a research associate at the Oxford Institute for Energy Studies, referring to the battle for buyers. “Aramco has been aggressive in protecting market share in Asia.”
No comments:
Post a Comment