• 4 minutes 5 Tweets That Change The World?
  • 7 minutes Trump Tariffs NOT China's Biggest concern. Chinese Shadow Banking Bigger. What is Shadow Banking You Ask ?
  • 11 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 minutes Glory to Hong Kong
  • 21 mins PETROLEUM for humanity 
  • 2 hours Any difference btw Hunter Biden on BOD of Ukraine Company vs. Qatar bailout of Kushner Real Estate 666 Fifth Ave ?
  • 15 mins The Ultimate Heresy: Technology Can't Fix What's Broken
  • 2 hours Total SA In Expansion: $600 million For India's Adani Gas
  • 2 hours China's Blueprint For Global Power
  • 27 mins HK. Out. Now.
  • 2 mins How The US Quietly Lost The 1st Amendment
  • 3 hours Who's Afraid Of Whom? - American Politics I
  • 18 mins Impeachment and Foreign Conflicts in USA Politics
  • 26 mins China 2019 - Orwell was 35 years out
  • 2 hours KURDS LEFT HIGH AND DRY TO DIE?
  • 2 hours American Politics II - The Political Implosion / America At War With Itself
  • 1 min ISIS Prisoners Escape Syria Camp After Turkish Shelling. Woohoo!
  • 2 hours The world may be oversupplied with oil now, what happens when this dries up ?
Alt Text

Saudi Attacks Mark A New Era Of Warfare

The attacks on Saudi Arabian…

Alt Text

Alberta Plans Oil Offensive, Starts ''Energy War Room''

Alberta’s government is moving to…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Saudis Refuse To Relinquish Grip On Key Asian Market

While it is cutting more than required in the OPEC deal, Saudi Arabia is not ceding its grip on its biggest Asian market—Japan—and is raising market share by selling more light crude to its prized market to compensate for revenues lost from cutting the supply of the heavy crude variety.

According to trade flows data by Thomson Reuters Eikon, Japan’s imports of crude oil from Saudi Arabia rose by 7.7 percent annually in the first half this year, to 1.3 million bpd, making the Saudis the biggest crude supplier to Japan.

Saudi Arabia’s state oil firm Aramco has been selling more of the Arab Extra Light to Japanese customers, as the Saudis have been offering extra light crude cargoes on top of the volumes that buyers have contracted, two Japanese refining sources told Reuters.

Trading sources told Platts in mid-June that the major buyers of Saudi oil in Asia had received full volumes for July, and some Japanese customers had even received higher volumes. At least two Japanese refiners had been allocated extra volumes, with one receiving “slightly more Arab Extra Light.”

Saudi Arabia “clearly sees Asia as its backyard and as a centre of growth and long-term source of demand. As such, it does not want to give up too much market share here,” Virendra Chauhan, a Singapore-based analyst at consultancy Energy Aspects, told Reuters.

Related: Total OPEC Crude Oil Exports Drop In June

While the Saudis are building up market share in Japan, they have been doing this at the expense of other Middle Eastern producers. Japan’s imports of Iranian crude oil fell by 20 percent between January and June 2017, imports from Kuwait dropped by 8 percent, and imports from the UAE declined 5 percent, according to Reuters trade data.

Saudi Arabia’s crude exports to China and South Korea, its second- and third-biggest Asian markets, were little changed in the first half this year compared to the same period last year. But exports to India and Taiwan fell by 3 percent and 13 percent, respectively, Eikon data shows, with trade sources saying that the drop was due to Saudi Arabia’s inability to deliver more heavy crude, which OPEC’s production cuts have affected most.

Asian crude buyers expect Saudi Arabia to raise its August official selling price (OSP) for the Arab Heavy crude that it sells to Asia to the highest in more than 3 years, as a tighter market for heavy crude grades in Asia amid the OPEC production cut has led to record refining profits on making fuel oil in Asia.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play