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.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% and 70% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.