Squeeze Russia out of the market: the Saudis offered Europe oil at $ 25

After Russia refused to participate in the OPEC + deal and did not begin to cut production, Saudi Arabia decided to test its strength.

According to Bloomberg, citing sources related to oil production, the Saudis decided to fill the European market with oil, which will cost much cheaper than Russian.

Thus, Europe becomes a kind of theater of "fighting" between Riyadh and Moscow.

According to the agency, Saudi Arabia has taken an unprecedented step and is offering its main Arab Light brand oil with delivery to Rotterdam at a price of about $ 25 per barrel, which is significantly lower than the price of Russian Urals oil.

At the same time, the Saudis sent a proposal to the largest European oil refineries to choose volumes of raw materials that are several times higher than the average volumes that these companies have chosen in recent years.

According to the interlocutor of the agency, we are talking about volumes that are 25-200% higher than the usual limits.

However, according to the expert community, this behavior of Saudi Arabia can be regarded as a tantrum.

This is due to the fact that, despite the low cost of oil production (about $ 3 per barrel), the country's budget, based on revenues from the sale of black gold, is designed for quotes of $ 85 per barrel.

Therefore, the current games of Riyadh with prices can very soon make the Saudis remember their roots - Bedouin tents and breeding camels.
  • Photos used: https://www.needpix.com/
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  1. T. Henks Offline T. Henks
    T. Henks (Igor) 12 March 2020 17: 01
    Sorry for the Strait of Hormuz. Foul up with oil.
  2. gorenina91 Offline gorenina91
    gorenina91 (Irina) 12 March 2020 17: 13
    Thus, Europe becomes a kind of theater of "fighting" between Riyadh and Moscow.

    - And here Moscow ...- is absolutely incomprehensible ...
    - But one thing is clear ... - the Saudis are lowering Moscow below the plinth ... - this is ... unfortunately ... - they will succeed ... - Moscow simply has nothing to offer ... in exchange for cheap excellent Saudi oil ... - and the quality of Russian oil is "not that", and the cost of Russian oil, even more so ... - far from being "the same" ... - It seems to me that it is in vain that Moscow treats this so calmly today ... - time is not working in favor Rosneft ... - And about Gazprom personally, I'm here ... - I'll just keep silent ... - here everything is clear and without words ...
    “But also Saud.” Following Moscow, Arabia will also suffer a crushing fiasco ...
    - This is where the Americans with their oil come in hand ... - But the Americans (USA) are very much in the way of China, which has very thoroughly settled in Iran ... - And it’s also ready to start trading in fine Iranian oil ... - But this is completely other story...
    - But this is what Russia should do ... - urgent emergency measures are needed ... - Russia has nothing to hope for China ... - Most likely, Russia will have to "surrender" Venezuela to the Americans ... and go to aggravation with China ...
    - In general ... - the situation is so serious .. that large-scale military operations in Syria and Iraq (and even Iran) may well begin and Russia will have to get into this military conflict ...
    - Everything is very serious .., but ... in Russia so far they are not taking any measures ... - Personally, this greatly disturbs me ...
    1. Arkharov Offline Arkharov
      Arkharov (Grigory Arkharov) 12 March 2020 19: 51
      It seems to me that in vain today Moscow is so calm about this ... - time does not work in favor of Rosneft ...

      - how did you decide so, I won’t be surprised if you are already "tearing your hair out"?
  3. kriten Offline kriten
    kriten (Vladimir) 12 March 2020 18: 29
    Russia, taking such a step, should have foreseen countermeasures - so that the Saudis would get into trouble on all sides. If this is not done, we will have more troubles. Only Sechin will be good ...
  4. andrew42 Offline andrew42
    andrew42 (Andrei) 12 March 2020 18: 36
    Let's see how realistic and how long the altruism of the oil sheikhs will last. We could have supplied Europe with oil for free, why waste little time! 2 years in advance. Everyone has no more than a "three" in their hands - whoever throws the first card has lost.
    1. master3 Offline master3
      master3 (Vitali) 12 March 2020 21: 49
      Let's see how real and how long altruism will last.

      - silly irony! In the early 80s with the help of oil prices, i.e. in the same way, the West collapsed in the USSR, and the USSR had a much greater margin of safety than Russia. Older people remember the empty shelves of grocery stores, and what else remained was sold by card.
      1. xilia72 Offline xilia72
        xilia72 (xantos) 12 March 2020 22: 59
        In the USSR, there were always half-empty stalls of grocery and non-grocery stores.
  5. shadow Offline shadow
    shadow 12 March 2020 23: 27
    And taking into account the fact that the Saudis are also waging a war, everything will probably collapse soon. And do not forget that 5-6 months ago, Yemenis inflicted a significant blow on the refinery, whose losses, if I remember correctly, amount to $ 300 million per day. So consider it.
    1. General Black Offline General Black
      General Black (Gennady) 12 March 2020 23: 43
      Yes, for the Saudis it would be a good practice to consult on the price of oil with the Hussites.
  6. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 13 March 2020 00: 02
    And Mishustin says the exact opposite. Allegedly.
    This is not Russia left. It was the rest ... And the Russian Federation, as it were, on the contrary offered OPEC + to support ....

    Who to believe ??? Nobody, probably ..
    1. Alexzn Offline Alexzn
      Alexzn (Alexander) 13 March 2020 08: 40
      When Mishustin said this, the ministers giggled and lowered their eyes (this is not a joke, you can look for a report on the meeting).
  7. Bulanov Offline Bulanov
    Bulanov (Vladimir) 13 March 2020 08: 55
    If Russia directs all efforts to the development of its own production, then it does not care about the Saudis. Then the real development of the country will begin! And in the 1980s, it was not the Saudis with cheap oil that collapsed the USSR, but the elementary betrayal of the elites. Factories and state farms worked, the products were in bulk, only they were kept in the storehouses by all sorts to ruin the country. And after the collapse, everything suddenly appeared. It was the same with bread when Khrushchev was filmed. It was the same in 1917 in Petrograd, when after the abdication of the tsar, bread again appeared on the shelves.
  8. g1washntwn Offline g1washntwn
    g1washntwn (George Washington) 13 March 2020 14: 05
    The Saudis offered their oil to Europe, a lot and almost for nothing. The point is small - the entire production of Europe, sharpened for Russian oil, reconfigured to a different brand of oil ...