Bloomberg said in a report that Saudi Arabia is offering some of its crude oil at a significant discount to the Asian market due to competition with Russia, explaining that “Riyadh has set the price of Arab Heavy and Arab Medium oil with the largest cut in the price of crude oil. Arab Light from 2014 for next August shipment to Asia.
This is due to the fact that the main importers of Arab heavy oil and Arab medium oil are China and India, which have recently increased their purchases of Russian oil.
Saudi Arabia has also offered similar discounts to its customers in Europe and the US, although Asia is the main market for heavy oil.
Bloomberg also pointed out that Saudi Arabia is not the only OPEC country that is suffering from strong competition due to Russia’s decline in oil prices in Asia, as there is also Iran, which is mainly dependent on the Asian market for its crude oil exports in light of the US sanctions. .
The agency indicated that Iran and Venezuela are also offering significant discounts on oil export prices to Asia to counter competition from Russia, and that Iraq has also been hit.
Source: El Nashra