Skip to content Skip to Search
Skip navigation

Saudi crude exports to Asia may fall due to discounted Russian oil

By Pramod Kumar
Aramco 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.

Latest articles

The subscription period for the retail tranche of Arabian Mills' IPO will start on September 18 and end on September 19

Arabian Mills’ investor IPO tranche attracts $36bn

The institutional book-building process for the initial public offering (IPO) of Arabian Mills for Food Products Company (Arabian Mills) has attracted total orders of SAR134 billion ($35.7 billion). The offering was oversubscribed 132 times by local and global investors. The company set the final offer price at SAR66 per share, the top end of the […]

Tiger Woods is on the PGA Tour Policy Board “transaction subcommittee” whose job it is to broker a deal with Saudi Arabia’s sovereign wealth fund

Tiger Woods joins LIV Golf-PGA Tour merger talks

Saudi Arabia’s Public Investment Fund (PIF) is reported to be due to meet Tiger Woods and officials from the PGA Tour this week in New York as negotiations continue to bring the fractured sport of golf together under one umbrella. The PIF-sponsored LIV Golf series, which this month completes its third season, turned the sport […]

family offices ultra wealth Simpson Bay Marina St Maarten

Ultra-wealthy pinpoint Gulf to set up family offices

US private equity investor Leon Black, who has a net worth of around $14 billion, last week confirmed he was opening a branch of his family office in Abu Dhabi. The co-founder of New York investment giant Apollo Global Management Inc. joins the likes of Egyptian tycoon Nassef Sawiris, Binance co-founder Changpeng “CZ” Zhao, India’s […]

Water, Waterfront, Boat

Smoother sailing for cruise market as Oman relaxes visas

Oman has relaxed visa regulations for cruise ship passengers visiting the sultanate. Authorities have introduced 10-day and one-month visas aimed at growing the country’s cruise tourism sector. Both visas, which are free of charge, are available from cruise-ship agents and are valid provided entry is made within 30 days of issue. The decision was announced […]