• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 2 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 5 hours Solar Cheaper than Coal
  • 23 mins Struggle For Supremacy: Kremlin Condemns Alleged U.S. Ultimatum To Turkey Over Missile Deal
  • 5 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 44 mins Apple Bid To Buy Tesla in 2013 For $240 a Share
  • 4 mins Why is Strait of Hormuz the World's Most Important Oil Artery
  • 15 hours California's Oil Industry Collapses Despite Shale Boom
  • 8 hours Global Warming Making The Rich Richer
  • 8 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 2 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 11 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 17 hours Iceland Reducing Gas Stations By Half By 2025
  • 6 hours Crude oil?
  • 13 hours North Dakota oil output totals 1.39 million b/d in March, up 4% on month: state
Russia Hints At OPEC+ Deal Exit

Russia Hints At OPEC+ Deal Exit

Russian policymakers have shown themselves…

Saudis Increase Oil Discount To Keep Iran From Taking European Markets

"The Saudis are preparing for Iran’s return," said Mohamed Sadegh Memarian, who recently retired as the head of petroleum market analysis at Iran’s oil ministry, as they sharply cut the prices they charge for crude oil in Europe (to the biggest discount since Feb 2009). The move that will likely undercut Iran happens as sectarian tensions escalate between the rival Middle Eastern nations. As WSJ reports, the Saudi move appears to pave the way for a competition over European oil markets later this year when Iran is expected to increase its exports after the expected end of western sanctions over its nuclear program.

Saudis have slashed prices with the biggest discount to Europe since Feb 2009...

Which has sent crude prices lower...

Related: What Comes After The Commodities Bust?

As The Wall Street Journal reports,

Italy and Spain relied on Iran for 13% and 16% of their oil imports before the European Union banned such purchases under sanctions related to its nuclear program in 2012. Although the country was replaced in the market by Saudi Arabia and other countries such as Russia, Tehran is counting on rekindling those ties when it resumes exports.

Saudi Arabian Oil Co., or Saudi Aramco, the kingdom’s state-owned oil company, didn’t mention the conflict in its news release about the price cuts.

Related: TAPI Pipeline Inches Forward

Aramco prices are set every month at a discount or premium to various regional benchmark prices, which go up and down based on supply, demand and other factors considered by the market. On Tuesday, Aramco said it was deepening the discount for its light crude by $0.60 a barrel to Northwest Europe and by $0.20 a barrel in the Mediterranean for February delivery.

Iranian oil professionals interpreted the move as a way to compete with Iran returning to the oil markets. The European Union is set to lift an embargo on Tehran as soon as next month.

...Hamid Hosseini, the president of Iran’s oil exporters union, said he expected more competition from Saudi Arabia after the recent political tensions. But Mr. Hosseini, who is himself involved in talks with Iran oil buyers, said, “Iran will come back to Europe,” possibly by offering better credit terms and by bartering oil for goods.

Though it is still unable to sell in the EU, Iran has cut its nominal prices for North Western Europe by 27 percent in the past year.

By Zerohedge

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News