Skip to content Skip to Search
Skip navigation

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

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

Aviation IT Shop, Shopping Mall, Person Dubai Airports already uses biometric technology and is preparing to launch a Smart Corridor to speed up boarding procedures airport aviation IT airports airlines investment

Aviation spends billions on IT to improve experience

The aviation sector invested billions into IT in 2023, as companies sought to improve passenger experience, according to a new industry report. Global airports increased their IT spending by 23 percent year on year to almost $11 billion last year, while airlines upped spending by 15 percent to $34 billion, according to the 2023 Air […]

Sellers at the fish market in Jizan, Saudi Arabia. The kingdom brought in regulations in 2021 to curb overfishing

Saudi Arabia and UAE back fishing subsidies ban

The UAE and Saudi Arabia were the only GCC countries to back a failed bid by the World Trade Organization (WTO) to curb subsidies that contribute to overfishing and wider fishing sector overcapacity. It had been hoped that the Agreement on Fisheries Subsidies (AFS), which, according to WTO director-general Ngozi Okonjo-Iweala, has “been on the […]

Tourists in front of the Jabal Al-Mawaqi rock art, Najran Province, Thar, Saudi Arabia

PIF and Seera fail to reach agreement on investment

Saudi travel major Seera Group Holding has terminated plans for the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, to invest in its subsidiary, Almosafer Travel and Tourism Company. The termination comes after the two companies failed to reach an agreement, Seera said in a statement to the Saudi bourse. The statement clarified that […]

Dubai Airport free zone operator’s profit rises 65%

State-owned Dubai Integrated Economic Zones Authority (DIEZ) said operating profit rose 64.6 percent year on year in 2023, driven by an 8 percent annual rise in revenues. The market value of net assets surpassed AED20.8 billion ($5.7 billion), Sheikh Ahmed bin Saeed Al Maktoum, chairman of DIEZ, said on the social messaging platform X. “These […]