15:50 GMT +330 March 2017
Live
    This photo taken on May 10, 2011 shows a worker walking by at an oil refinery of China's Sinopec, in Wuhan, central China's Hubei province

    Saudi Arabia Losing Its Crude Oil Crown in Asia

    © AFP 2017/ STR
    Business
    Get short URL
    197960744

    Amid the dismissal of Saudi oil minister Ali Naimi, Saudi Arabia is losing its crown of top crude supplier to Asia, mostly being outperformed by Russia and Iran.

    “Stiffening competition from countries such as Russia and Iran is threatening Saudi Arabia’s longtime hold over markets including China, Japan and India,” says the Wall Street Journal’s analysis of the issue.

    The Asian region’s biggest oil importer, China, has increased its oil imports from Russia, which now account for 13% of its total oil imports in the first quarter of 2016, as comparted to 10.6% in the same period the previous year.

    Its oil imports from Saudi Arabia, on the contrary, have fallen to 15% from 15.9% last year.

    Demand for Russian oil has been growing from independent Chinese refiners — known as ‘teapots.’ The government allowed them to start importing crude oil in the second half of last year, part of Beijing's efforts to boost private investment and competition in oil refining which is dominated by state-run groups.

    Russian suppliers are trying to make it more attractive to deal with them, the newspaper says citing as an example the decision of Russian State-owned Gazprom Neft to trade with Chinese customers in the yuan rather than the dollar.

    The Saudis are also losing out in Japan, where they supplied 33.7% of oil imports in March this year, down from 37.6% in the same month last year, while Russia’s share grew by 1 percentage point to 7.6% according to data released by the government.

    There is yet another potentially risky market for Saudi Arabia, and that is India.

    “This year, Russian state-controlled oil giant OAO Rosneft plans to start sending regular deliveries of crude to India’s second largest oil refinery.

    That follows Rosneft’s decision to buy a big stake in India’s Essar Oil, which owns the refinery and a network of about 2,000 gas stations. The purchase is set to be completed this year,” the newspaper says.

    Another Saudi key rival in Asia is Iran.

    “Iran is definitely a threat to Saudi Arabia, in particular in the Asian market,” Gao Jian, a Shandong-based oil analyst with SCI International told the newspaper. 

    The above statement is confirmed by data released by the government.

    In South Korea, Iran’s share of imported oil more than doubled to 8.6% year-to-date, compared with all of 2015, while Saudi Arabia’s market share declined. Iran has also boosted its market share in India

    Related:

    Saudi Arabia to Stick With Its Current Oil Sector Policies
    Saudi Arabia's Oil Minister Fired as Part of Gov't Reshuffle
    Saudi Arabia Sliding Toward Agreement on Oil Freeze - Russian Envoy
    Tags:
    Oil, oil imports, supplies, market, India, Iran, China, Russia, Saudi Arabia
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment

    All comments

    • avatar
      UDENTA O UDENTA
      A huge lesson to learn form this, a very heartwarming reality is the decision of the Russian oil concern to conduct its business in yuan, the Chinese currency. The de- dollarization process is gathering momentum and one hopes that this is not a one off experience but part of a well coordinated and integrated larger picture. The near complete de- dollarization of global financial transactions is key to weaning the world from irresponsible American pressure and unilateral sanctions regime, and liberating the global economy from the umblicus of an arrogant and unconscionable imperialist hegemony.
    • Drain the swamp
      The day Russia finds out their jet in Sinai was shot down with saudi/qatari aid, they will wipe out the 14mbpd salt water injection plant at Qurayah and 14 ghatar gas-trains, and the saud/wahab/ghatari will go back to using desert sand as toilet paper. And ISIS will collapse with no financing anymore.
    • avatar
      goldcamshaft
      Saudi Arabia has been doing for the last two years what the americans have done for 60 years, In the last 15 years, america has concentrated on wasting its borrowed money on wars and the replacement of so called rogue governments, governments that are legally elected by their people, but do not obey washington's orders. The Saudis have learned this mismanagement tool very well from the great mismanagers of the world.
      All I can say now is "good luck", since they have become gamblers like the great casino, usa.
    • Drain the swampin reply toUDENTA O UDENTA(Show commentHide comment)
      UDENTA O UDENTA, More importantly it will disable the limitless dollar printing press with which the great satan is financing its absurdly disproportionate military expenditure.
    • avatar
      jj42
      Anything is good to diminish tyrant regime
    • FlorianGeyerin reply toUDENTA O UDENTA(Show commentHide comment)
      UDENTA O UDENTA,

      Oh what a tangled web they weave.

      " Isaac Herzog, member of the Knesset and Chairman of the Israeli Labor party, revealed that Saudi king Salman bin Abdulaziz financed the election campaign of Israeli Prime Minister, Benjamin Netanyahu. "

      www.almasdarnews.com/article/panama-papers-data-leak-king-saudi-arabia-sponsored-netanyahus-campaign | Al-Masdar News


      I do hope that puts a bit of sand into the Saudi Tank :)
    • avatar
      UDENTA O UDENTAin reply toDrain the swamp(Show commentHide comment)
      NWO has been Trumped !!, thanks for reminding me. Not very many people realize that the US economy is on permanent life support no thanks to the frenzy of churning out dollar bills by the Federal Reserve. I am not sure of the exact figures but by some estimates over 10 trillion dollars have been printed to keep the US economy afloat since 2008. Fake, bubble gum economy and fake, bubble gum currency living on borrowed time.
    • avatar
      UDENTA O UDENTA
      teddy j, I hope that readers of Sputnik, members of our community and the wider public through other means of news dissemination (twitter, facebook, instagram, etc) are listening. Your ground-breaking views needs robust coverage because it touches the core of the debate about economic sovereignty and the end of US imperial economic dikta.
    • avatar
      UDENTA O UDENTAin reply toFlorianGeyer(Show commentHide comment)
      FlorianGeyer, I followed the link you helpfully included in your comment and I was blown away by the sickening revelations. On second thought I asked myself why I was so shocked when as you put it, "Oh what a tangled web they weave"; that is, the club of imperialists, their regional foot soldiers in pretentious mock enmity and combat as well as the fellowship of terrorists who are heir faithful fellow travellers. I recommend that link to all lovers of peace and human progress. Thanks for this great revelation.
    • avatar
      anne00mariein reply toUDENTA O UDENTA(Show commentHide comment)
      UDENTA O UDENTA, I was reading your comment and must admit the first thing that came to mind was the Wicked Witch of the West, where she melts in the Wizard of Oz. I just thought of her as Washington DC and the politicians who are behind so much misery in the world and picturing them melting as Putin clicks his little red shoes and trots off home.

      I'm Melting! - The Wizard of Oz (7/8) Movie CLIP (1939) HD... www.youtube.com/watch?v=aopdD9Cu-So
    • avatar
      anne00mariein reply toDrain the swamp(Show commentHide comment)
      NWO has been Trumped !!, I think they know, but just substantiated evidence. No doubt, which is why they have sped up the 'dump the $USD' programme?
    • avatar
      anne00marie
      teddy j, So true, do you remember Crimea, signed, sealed and delivered, before the EU could even arrange an emergency meeting.

      Then you had Gazprom, who bent over backwards with regards Ukraine and cheap gas. Nobody believed them when they said no more, advance payment only. Then they started freaking when they realised Gazprom was not going to change their minds.

      Syria, one day Putin is delivering the speech of the century and the next his Forces have set up base in Syria, and doing more than giving the sand a pounding.

      Then the Caspian Sea, how Washington DC had no idea a destroyer could send it's missiles so far and so accurately.

      I posted this in reply to Udenta, but think this might appeal to you:

      Just picturing McCain in the role of the Wicked Witch of the West and Putin as Dorothy, with Assad as The Tin Man. Sorry, my humour is out of kilt.

      www.youtube.com/watch?v=aopdD9Cu-So
    • avatar
      anne00mariein reply toFlorianGeyer(Show commentHide comment)
      FlorianGeyer, Thanks for that link and seriously interesting. There again, I am not surprised because who are heavily invested and are working together for the Qatar to Europe Pipeline Deal?
    • avatar
      UDENTA O UDENTAin reply toanne00marie(Show commentHide comment)
      anne00marie, your sense of humour is amazing even when deprecating the inhumanity of the Witches and Wizards in our midst. I will surely open that link and get myself a good laugh at the expense of the human vermin and monsters that terrorize our globe so mercilessly.
    • siberianhuskyin reply toUDENTA O UDENTA(Show commentHide comment)
      UDENTA O UDENTA,

      It cannot happen fast enough for me.
    • Annin reply toUDENTA O UDENTA(Show commentHide comment)
      UDENTA O UDENTA, Indeed!
    • avatar
      UDENTA O UDENTAin reply tosiberianhusky(Show commentHide comment)
      siberianhusky, knowing where mankind was 20 odd years ago, I will say that some progress has been made. International relations and global economic and financial interconnectedness were poisoned by the vulgar chalice of American imperialism with the dissolution f the USSR and the triumphalist launching of a NWO driven by imperialist impunity and excesses and great power hegemony. Now, mankind's historical trajectory has been significantly bent in a different, multipolar trajectory, many thanks to Russia and China. Sure, its annoying that a lot of the injustices and inhumanities of the past remain but with hard work, iron will and tenacity of purpose, I believe we will get there.
    Show new comments (0)