China’s oil demand is on the rise as the country reopens from Covid restrictions after nearly three years. Analysts predict that China will account for half of the global oil demand growth this year, with total world oil demand reaching a record.
The leaders of the OPEC+ group, Saudi Arabia and Russia, are competing to meet the growing demand in the world’s largest crude oil importer. Saudi Arabia sells its crude oil under long-term contracts, so it has a guaranteed share of the Chinese market. However, Russia has pivoted to Asia for crude and fuel sales after the Western sanctions, and is offering its oil at discounts, which could attract more Chinese buyers who don’t abide by the G7 price caps.
The Saudis are expecting a strong rebound in China’s demand and have raised their prices for Asia. But these prices cannot compete with Russia’s discounts, and the Saudis are now looking to increase their market share in China by offering more flexible terms.
It remains to be seen which country will be able to meet the rising demand in China. However, it is clear that the competition between Saudi Arabia and Russia will be fierce, and the outcome could have a significant impact on the global oil market.
2023-02-11 19:00:00
Post from finance.yahoo.com
Over the past several years, Saudi Arabia and Russia have been two of the most important players in the oil market. As such, their competition for a larger portion of the Chinese oil market has become increasingly heated.
In recent months, China has been the world’s largest importer of crude oil, a statistic which has not gone unnoticed by the Kremlin and Riyadh. As a result, both countries have begun employing tactics designed to increase their market presence in this lucrative region. For example, Saudi Arabia recently cut its oil prices in an attempt to undercut Russian suppliers in the Chinese market. Meanwhile, Russia has begun to explore deeper economic connections with Beijing as a way of strengthening its position in the area.
At the same time, both countries have sent representatives to China to participate in talks regarding the future of oil production. This includes negotiations between both countries and Chinese energy companies to increase existing production agreements and to find new supply sources. In addition, specific measures have been taken to increase efficiency and improve oil flow into the Chinese market.
The competition between Saudi Arabia and Russia in the Chinese oil market is a sign of their respective importance in the global oil industry. Moreover, the effects of this competition are being felt by Chinese energy companies and consumers alike. As such, the international community will be watching and hoping that both countries maintain their commitment to a successful and equal presence in this important market.