Energy Saudi crude exports to Asia may fall due to discounted Russian oil By Pramod Kumar October 16, 2022, 1:38 PM Reuters/Ahmed Jadallah Saudi Aramco is expected to cut the official selling price for Arab Light crude in August by about 50 cents a barrel from the prior month Saudi Arabia’s oil exports to India and China will be slightly hit due to the sanctions imposed by the US and European Union (EU) on Russia, according to the King Abdullah Petroleum Studies and Research Center (KAPSARC) report. The two Asian countries will buy more discounted Russian crude, which will benefit their gross domestic products (GDPs), Arab News reported, citing the report. One immediate implication would result in a short-term loss for the kingdom’s oil market share in India and China. The report said this will have a small impact on Saudi GDP of up to 0.2 percent. KAPSARC expected oil prices to rise five percent per annum from their baseline equilibrium in the next two years due to the Russian sanctions. Sanctions from both the G7 and the EU are set to begin on December 5, according to Reuters. The EU will ban seaborne shipments of Russian oil from December 5 and products from February 5, 2023, cutting the trade off from financial services and potentially halting it worldwide. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
