63244
Saudi Arabia is cutting crude pricing to Asia to hold on to its share.
Saudi Arabia is cutting crude pricing to Asia to hold on to its share.

Saudis Losing Market Share to Iran, Iraq

Iran has boosted crude oil production in part due to the end of international sanctions in January 2016 which had restricted its oil sales

Saudis Losing Market Share to Iran, Iraq

Saudi Arabia, the world’s biggest crude exporter, is losing market share to Iran and Iraq as a result of OPEC’s agreement to curb supplies to bolster prices, according to the head of research at Abu Dhabi Investment Authority.
“If you’re talking about winners, you can count Iran and Iraq,” Christof Ruehl said at a conference in Dubai, World Oil reported on Thursday.
The Organization of Petroleum Exporting Countries agreed to production limits for most of its members at a meeting in November and brought 11 other nations on board with the deal in December.
Saudi Arabia, OPEC’s biggest producer, agreed to cut output by 486,000 barrels a day while Iraq said it would cut 210,000 barrels a day. Iran was permitted to increase output by 90,000 barrels a day, according to the OPEC accord.
Iran has boosted production in part due to the end of international sanctions in January 2016 which had restricted its oil sales, while Saudi Arabia has made more than its share of output cuts, said Ruehl, who previously worked as BP Plc’s chief economist.
Saudi Arabia knew it would lose share because Iran’s production was on the rebound, said Robin Mills, founder of Dubai-based consultant Qamar Energy. “The Saudis agreed to production cuts at a time when Iranian production was at a high.”
Brent crude slipped 20 cents, or 0.4%, to $51.62 a barrel at 9:29 a.m. in Dubai. The global benchmark plunged from its 2014 high of more than $115 a barrel amid a global supply glut. There seems to be a consensus that the effort to curb supply should be extended, Saudi Minister of Energy and Industry Khalid al-Falih told reporters Wednesday in Baku, Azerbaijan.
  Production Cuts
Saudi Arabia cut production from about 10.5 million barrels a day in December to 9.87 million daily in January and 10 million a day last month, according to data compiled by Bloomberg.
Iran’s output rose to 3.8 million barrels a day in January, the highest since April 2010, the data show. Iran insisted it needed to recover its market share following years of sanctions that penalized its oil industry. Neighboring Iraq pumped 4.43 million barrels a day in March, down 200,000 barrels for the year, according to the data.
Iran and Iraq increased crude sales to China last month, while Saudi Arabia slipped behind Russia and Angola as the largest suppliers to the nation, data released Tuesday by the general administration of customs show.
“The Saudis are losing out because other countries are able to squeeze out more production,” Bell of Emirates NBD said. Saudi Arabia is cutting crude pricing to Asia to hold on to its share, Bell said. The kingdom will likely release its official crude pricing for June next week, with most other regional producers following.
“The OPEC market share battle hasn’t gone away,” he said.

Short URL : https://goo.gl/8ZA6mV
  1. https://goo.gl/M8XMfD
  • https://goo.gl/by2fkT
  • https://goo.gl/Crz5D7
  • https://goo.gl/2ECnJm
  • https://goo.gl/NakUha

You can also read ...

South Korea shipped in 446,148 barrels per day of crude oil from Iran in September.
Unenthusiastic about trading oil in the US dollar and South...
Austrian Firm to Build 4 Solar Plants in Fars
Austria’s Solar and Benefit Group and Fars Province Investment...
Pergas Submits Proposal for Developing Karanj Oilfield
Pergas Consortium, a group of international oil and gas...
The prospect of peak oil demand is hotly contested in the energy industry.
Global oil demand growth will slow to a crawl and gasoline use...
Gulf of Mexico Oil Spill May Be Largest Since BP Disaster
An oil spill in the Gulf of Mexico last week may be the...
OPEC and other producers have agreed to cut production by 1.8 million bpd until next March.
The Organization of Petroleum Exporting Countries has a...
Condensate Exports to Rebound in November
Iranian exports of ultra-light crude oil, known as condensate...
Brent Hits $58
Oil prices firmed on Tuesday, building on gains made as...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus