Saudi Arabia has made a rare announcement to cut the price of oil exports from Asia, Europe and the

Mondo International Updated on 2024-01-31

Wang Ye said financial news: rare!Saudi Arabia announced that it will cut oil exports from all regions including Asia, Europe, and the United States**!What happened?What signal is being released behind it?

On January 9, it was reported that a few days ago, Saudi Aramco, a state-owned oil company, announcedThe price of the flagship** sold in all regions in February will be reduced.

Specifically, Saudi Aramco lowered the selling price of its flagship Arabian Light** for Asia-oriented barrels by $2Lowered the price of Arabian Light** sold to Northwest Europe by $2 barrels in February;The price of Arabian Light** sold to the United States was reduced by $2 barrels.

So the question is: why is Saudi Arabia lowering oil exports from all regions at this time?

In this regard, Wang Ye said that Caijing believes that there are three main reasons, specifically:

First, February is the traditional off-season for oil imports, and when global oil demand is sluggish, Saudi Arabia has cut prices in order to stimulate customers to increase purchases.

For example, as soon as Saudi Arabia announced a price cut, India was the first to say that it would increase the purchase of Saudi oil.

Clause.

Second, Saudi Arabia is facing competition from other ** sources, so the price reduction is also to regain some of the lost oil market share.

Whether it is Russia's discounted oil exports, or African non-OPEC oil producers exporting a large amount of oil, this has "eaten" Saudi Arabia's global oil market share to a certain extent, so Saudi Arabia also wants to take back some markets by cutting prices.

Clause.

Third, Saudi Arabia's oil exports have been downgraded, which also reflects the current concern about oil surplus.

At present, although Middle Eastern oil producers are keen to reduce production and stabilize prices, African oil producers refuse to cooperate, and the production from non-OPEC countries is gradually increasing.

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