MOSCOW (Sputnik) — Asia is the only expanding oil market, driven mainly by China, amid Western decline in demand for oil and the global crude price slump, Willy Olsen, Oxford Energy Institute analyst, told Sputnik.
"Asia is the only growing oil market in the world, driven mainly by China, but also growth in other markets. Europe is seeing a decline in demand for oil. USA has less and less need for imported oil since it now have large shale oil production," Willy Olsen told Sputnik.
Last week, the Saudi Arabian state oil company Saudi Aramco reduced oil prices for Asian buyers by $0.9, which Olsen calls "price competition" between the oil producers.
Igor Yushkov, a senior analyst at Russia's National Energy Security Fund, told Sputnik that Saudi's move to drop oil prices for Asia was made to pressure other "financial market players" and to show that the oil price slump is not over. "Quite possibly, OPEC states will continue dumping inefficient projects…to retain the Asian market," Yushkov said.
Global oil prices were relatively stable at around $110 per barrel from 2010 until June 2014. Since then, oil prices have dropped significantly due to an oversupply in the market.
Crude prices sank further in November 2014, when OPEC decided not to cut oil output levels.
Following the decline in oil prices, Saudi Arabia reduced the price of its oil, which many analysts said was an attempt at starting a "price war." Saudi Arabia asserts that it simply doing what is necessary to protect its market share.
