Lower Oil Prices Bring Saudi Arabia A Bigger Piece Of The Market
Saudi Arabia is doing everything it can to protect the market share, offering more oil at lower prices.
The Saudi oil is replacing their competitors (Venezuela, Kazakhstan, Russia, and Iraq) oil in Asian, European and United States market. Saudi Arabia, the biggest producer of oil in OPEC, is notorious for selling its oil not only using the spot market, but also making direct deals which remain confidential. This makes the tracking of Saudis oil trade almost impossible. Ali al-Naimi, however, confirmed the expanding oil deliveries on Sunday.
This long term oil minister of the kingdom is renowned for being very cautious about what and when he officially states, but he claimed that his kingdom is currently producing around 10 million barrels of oil per day. This figure is close to the historical record, and more than 350.000 barrels per day more that the official Saudi Arabia figure, which was provide to OPEC in the February report. The oil Minister added that Saudi Arabia is capable of producing even more oil, if the demand from its customers gets any higher.
The executive chairman of PIRA, a consultant agency that forecasted the 10 million barrels per day production of Saudi Arabia, Gary Ross, stated that his company’s research indicates that even more crude oil could be delivered to Asian market, and eve the United States. The customers confirmed such predictions.
The Asian market is opting for Saudi oil, with refineries in China substituting oil from West Africa, with Light Grade oil barrels from the Saudi Arabia. Competitive prices of Saudi oil, also encouraged certain customers in the United States of America to switch to their oil.