Saudi Arabia, the world’s top crude oil exporter, has devised new plans to increase its oil prices through the cutting of its production and shipments.
The oil powerhouse has kept all its exports for this year scheduled which makes it below 7 million BPD in recent months. This move was made to reduce the possibility of another large oil glut from weighing down on oil prices.
Furthermore, Saudi Arabia has completely transferred most of its crude oil exports to the world’s top oil importers, China and reduced its shipments to the United States. This data was collected and analyzed by various sources like the vassal tracking data, EIA estimates show and Chinese customs.
With this shuffle, Saudi has reduced its oil export to the most limpid receiver, the USA. On the other hand, it has been increasing its sales to China, who are seen as the most coveted market in regards to giving an account of oil inventories.
This marketing strategy is being used by them to rebalance the market, and consequently for them to increase oil prices.
The oil powerhouse, Saudi Arabia is depriving the most livid market, while increasing sales to opaque one, also taking advantage of US sanction of Iran to boost oil sales