Saudi Arab Light, which will be sold in Europe at a discount to Brent of $ 10.25 per barrel, seems to have won the first battle in the price war against the Russian Urals. According to Reuters, the EU has been refusing tanker supplies of oil from the Russian Federation for the second week.
The world's largest independent trader Trafigura offered parties with shipment from Primorsk and Ust-Luga on March 30 – April 3 at a price of $ 3.35 lower than Brent (about $ 23 per barrel). However, not a single European buyer purchased these lots.
Swiss Glencore exhibited 100 thousand tons of Urals with delivery through Baltic ports on April 4-8. The Brent discount was even greater – $ 3.7 per barrel. But this was unsuccessful. As well as an attempt to sell goods shipped on March 27-31.
Another 100 thousand tons of Urals at a discount to Brent of 3.35 dollars per barrel was offered by Royal Dutch Shell, and Total – lots with shipment on March 28 – April 1. The result is the same. Neither Stasco nor Vitol were able to sell anything.
As a result, traders will have to leave oil in tankers indefinitely. Reuters sources said that Glencore has already leased for six months the world's largest supertanker Europe with a capacity of 3 million barrels.
“Everyone will seek to purchase from the Saudis,” one of the European traders explained to the agency. “Buyers will seek to minimize Urals volumes because they know they can get Saudi barrels. Prices are so low that it’s much more profitable, ”another Reuters source added.
True, Saudi oil will arrive no earlier than mid-April. Therefore, at the moment, old contracts for the supply of Russian raw materials will be implemented. However, problems with Russian oil industry workers arose not only in Europe.
Saudi Arabia begins to push Russia into the PRC market
The Chinese state-owned petrochemical company Sinochem refused to purchase from Rosneft. When purchasing oil for the Guangzhou refinery, Sinochem put together a tender so that the Russian state-owned company would be excluded from possible suppliers.
According to one of the requirements of the document, the company should not be subject to US sanctions. And Washington imposed sanctions on Venezuelan oil trading against Rosneft Trading and TNK Trading (Rosneft’s affiliated traders).
A Reuters source says the United States and Saudi Arabia want to punish Russia, and even China will no longer be able to help it. China wants to replace Urals with Arab Light, since Saudi Aramco will sell Celestial raw materials at a discount of $ 6 per barrel to Brent.
Riyadh can afford it. The cost of Saudi oil is $ 10 per barrel for existing wells and $ 17 for new fields. At the same time, Russia needs a price of $ 25 per barrel in order to maintain oil production.
A comfortable price range for Russia, according to Deputy Energy Minister Pavel Sorokin, starts at $ 28.96 per barrel. If Russia goes to lower prices for the European market, the ruble will fall to 84 rubles per dollar. : ///
Record Arab Light won Urals first battle in the price war first appeared TEKNOBLOG .
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