While Europe used to be the largest market for Russian oil exports, Saudi Arabia has recently sent a record number of oil tankers to Egypt.
The shipment data compiled by Bloomberg shows that as of March, Saudis
daily oil exports to Egypt reached 1.3 million barrels, the highest
level in at least 3 years.To get more news about
Saudi Wages, you can visit
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The freights will be shipped to a terminal at the southern end of Suez
Canal, where theyll be further transferred to the storage and
exportation facilities in the Mediterranean region.
At the beginning of March, Saudi already began cutting official price of oil
exported to Europe by an unprecedented level, which makes the actual
price of oil sold to Europe to be US$10 / barrel.
As the global oil demand is experiencing a historical slump(down by 26 million barrel per
day, according to statistics from Goldman Sachs), European oil plants
are reducing their output to avoid excessive inventory.
But Saudis ramping up of crude export to Europe can slash Russian oil export by 1 million barrels per day.
The greatest challenge facing Russian oil industry is the permanent loss of
capacity after part of the producers with higher costs are crushed by
Saudi‘s move. A HFI research estimates that about 10% of Russian’s oil
producing capacity will be lost irreversibly and Russias daily output
will reduce by 500 thousand to 1 million barrels permanently.
The energy sector is seeing perhaps one of the most frantic moments in history, with the pricing getting out of control.
