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Monday, 23 July 09:06 (GMT -05:00)



Stock and commodities markets

Saudi Arabia Raises Oil Prices for Asian and European Buyers


Saudi Arabia is reported to have raised oil prices for Asian and European importers. This is confirmed by Bloomberg.

 

 

 

 
The reason for this unexpected decision is believed to be the collapse of the oil industry in Venezuela . Since a Venezuela n oil terminal in the Bahamas has been arrested, Caracas may well fail to fulfil the oil contracts signed with some Asian and European importers. In particular, Venezuela is expected to fulfil those contracts only to 70%. This means that some other oil exporter will have to make up for this shortage.
 
According to Saudi Aramco, Saudi Arabia’s biggest state-owned oil company, all of their Asian clients will have to pay for Arab Light oil $0,2/b more and $2,1/b above the Oman Dubai benchmark starting from June. This is the biggest price increase in 4 years.
 
As for those heavy sorts of Arabian oil that are close to the Venezuela n ones, they are expected to become $0,4-0,7/b more expensive. For instance, for Arab Heavy, this will be the highest price since 2012.
 
As for European importers, the Saudis are planning to cancel the discount program for them. For North-Western EU states, the Saudi oil cost will increase by $1,6-2,5/b. At the same time, Arab Extra Light is expected to level with Brent oil. South European states will get the Saudi oil for a price $1,2-2,1/b higher than before.
 
It’s also interesting to note that ConocoPhillips (USA) won a trial with PDVSA (Venezuela ) in the international arbitrage to the amount of 2 billion dollars. That’s basically why the mentioned terminal in the Bahamas was arrested. The thing is that Venezuela used to use it as an oil hub for delivering crude oil to Asia. So, according to the IEA, Venezuela ’s oil production has reached the lowest level over the last 50 years.

 

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Publication date: 05 July 11:47 AM

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Publication date: 27 June 11:27 AM

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Publication date: 24 May 11:26 AM

Crude Oil Goes Above $80/b, Morgan Stanley Improves Oil Forecast

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Publication date: 17 May 11:20 AM

Oil Prices At $79/b, Russian Ruble Still Weak. Why?

On Tuesday, May 15th, Brent oil reached $79/b. Strange as it may seem, the Russian Ruble hasn’t reacted to this so far, even though this always has been a positive sign for Russia’s national economy and currency heavily reliant on crude oil prices. Moreover, the currency has been going slightly down for a while despite being backed by higher oil prices.

Publication date: 15 May 01:19 PM

Russia Isn’t Interested In OPEC+ Anymore

Right in advanced of the forthcoming OPEC+ summit some experts doubt that Russia is still interested in the agreement. The strategic objectives of the OPEC+ deal are almost reached. The imbalance in the global oil market has almost been eliminated. The cost of a barrel of Brent oil has increased by more than 100% since late 2016. At this point Brent oil is trading above 70 dollars per barrel. On Q1 2018, the OPEC made 400 million dollars a day more than 12 months before.

Publication date: 28 April 07:57 AM

Who Loses and Wins from Oil Prices At $70/b?

High oil prices have two sides of one coin. On the one hand, while oil producers are  benefiting from today’s oil prices over $70/b, this seems to be  creating an extra pain for oil consumers worldwide. What exactly has been happening to oil-producing economies?

Publication date: 28 April 06:10 AM