Hopes for Oil Rebound Wane as Saudi Aramco Lures Consumers of Russian Oil

Trading Tips

Saudi Aramco has confirmed requests from several European buyers to increase oil supplies with shipments in April, said to Reuters five sources in trading circles and oil companies.

According to the sources, additional batches of Saudi oil will be shipped to SOCAR, BP, Total, Shell and Eni next month. These are traditional buyers of the Russian grade Urals so the Kingdom’s move increases the likelihood of full-scale price war between oil producers.

Reuters also said that Saudi Arabia has stepped up negotiations with refiners about price and supplies, primarily by contacting Urals consumers. Market participants attribute this to the kingdom’s response to Moscow’s withdrawal from the OPEC+ deal. Oil market is expected to resume decline next week if the Fed fails to deliver powerful credit stimulus which should support global markets.

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