Saudis open new phase in Asia oil market: Reuters
According to a recent report, Saudi Arabia has sold a spot crude cargo to an independent Chinese refiner, marking a new phase in the turf war for dominance over Asia’s oil market. This sends a strong message to its rivals Russia and Iran.
State-owned Saudi Aramco, the world’s biggest oil exporter, sold 730,000 barrels of crude for June-loading to Chinese refinery Shandong Chambroad Petrochemicals, one of about 20 independent refineries nicknamed “teapots.” This is Aramco’s first spot sale to a teapot, adds Reuters.
Aramco typically sells its crude through contracts of one year or longer, and under an Official Selling Price (OSP), rather than in spot trades.
“The Saudis are essentially showing more flexibility in order to tap into that market as it fights for market share. It points to a more creative and less rigid marketing strategy,” Reuters quoted Virendra Chauhan, analyst at Energy Aspects in Singapore as saying.