There’s too much Saudi oil in Europe
The unexpected decision of the Saudi Arabia government to grant access to its gas deposits to Russian companies a shock. Of course, Russia and Saudi Arabia have common interests as leading countries exporting hydrocarbon raw materials. However, one should not forget that the two countries are in real competition. Any kind of philanthropy is out of the question. So, what is the true goal of the Saudi oil sheikhs? It seems that the answer to this question is becoming clearer.
A high-ranking source from OPEC told RIA Novosti news agency that Saudi Arabia is not going to stop its expansion of the oil market in Europe. The oil company Saudi Aramco has already delivered between four to five million barrels of crude to Europe.
As it is known, the European countries are quite dissatisfied with OPEC policy at present moment. The rise in oil prices has affected the economic recession in Europe. The leaders of the European Union have already informed OPEC that they would be happy with the price of an oil barrel of not more than 20 euros per barrel. However, OPEC does not consider changing its quota-restraining policy.
It seems that Saudi Arabia decided to do something about the problem and to oust Norwegian and Russian oil from European markets. A source at OPEC is certain that this is the real goal of the petroleum expansion on the part of the Saudi Kingdom.
According to information from foreign media outlets, the oil tanks of the Rotterdam port contain two million barrels of the Saudi oil. Two million barrels of Saudi oil is also currently being stored at the Gavra port. In addition, one million barrels of oil more are being stored in floating oil tanks. All of that oil was delivered by the company Saudi Aramco.
Experts notice that one such delivery was enough for the price of Norwegian Brent oil to drop four to five cents. As the Europeans expect, the reduction of oil prices will continue.
The management of the company Saudi Aramco claims that the company is ready to deliver higher quality Extra oil to Europe. The London Raw Materials Exchange said that the Arabian company has already delivered nine million barrels of light and heavy oil to Europe for testing on its refineries. This delivery was carried out in October of the current year. To crown it all, the London Exchange informed that there are two million barrels of high-quality Iranian oil stored in Rotterdam oil tanks.
According to experts, deliveries of large quantities of crude from Saudi Arabia and other countries of the Persian Gulf will allow the oil balance on the continent to be changed. There are almost no doubts at the moment that OPEC eventually decided to follow through with its old threats against Russia, the real strikebreaker of the global oil market.
Dmitry Slobodanuk PRAVDA.Ru
Translated by Dmitry Sudakov
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