Saudi Arabia is importing a significant amount of fuel oil from Russia, as of last month. The current imports amount to tenfold the amount compared to that of the previous year. The surge in oil sales was partly driven by discounts placed on prices as a result of Western sanctions on Moscow.
As of February 2022, following Russia’s invasion of Ukraine, European and Western nations are barred from purchasing Russian fuel. Saudi Arabia, along with several countries in the Middle East and North Africa, are emerging in the place of Europe, formerly the top market for Russian oil and petroleum.
Read more: Saudi Energy Minister: We reduce production out of need
Reports indicate that Saudi Arabia purchased 193,000 barrels per day this month. This amounts to 910,000 metric tons of fuel oil, a record volume. This is an increase from May’s 174,000 barrels per day of diesel and gas oil from Russia. In turn, Saudi is selling their own supply to the EU.
This comes ahead of the news of voluntary production cuts and reduced crude oil exports. The cuts were implemented by Saudi Arabia, and then Russia, two of the Organization of Petroleum Exporting Countries’ members. The countries intend to reduce production out of need, with preliminary cuts extended into August, with a possibility of further extension. These efforts are in light of fluctuating oil prices, with the hopes of ensuring a balanced oil market.
The recent OPEC International Seminar, titled, “Towards a Sustainable and Inclusive Energy Transition,” touched on issues facing the volatile global oil market. OPEC and OPEC+ countries produce around 40 percent of the global oil supply.
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