Saudi Arabia has dramatically lowered selling price of oil for Europe


On Tuesday Saudi Arabia sharply lowered the price of crude oil for European consumers, reports the Wall Street Journal.

The State Oil Company of Saudi Arabia “Saudi Aramco” reported an increase of discount on crude oil by $0.6 per barrel for northwest Europe, and $0.2 for the Mediterranean buyers in February.

According to the newspaper, such a move could undermine Iran, which is to increase the export of fuel this year after the anticipated lifting of sanctions. The Iranian oil industry embraced it as an attempt to compete with Iran.

“The Saudis are preparing to Iran’s return,” – said the former chief analyst on the oil market of the Ministry of Oil of Iran Mohammad Sadegh Memarian.

The measures taken by Saudi Arabia followed the diplomatic conflict with Iran. On Sunday, Saudi Arabia broke off diplomatic relations with Iran after protesters attacked the embassy of the Kingdom in Tehran, and Consulate in Mashhad. The reason for the protests was the execution of the famous Shiite preacher Nimr al-Nimr in Saudi Arabia. However, Saudi Aramco did not mention the conflict in its press releases reporting about lowering prices.

At the same time, Saudi Arabia has raised the oil price at $0.6 dollars per barrel for Asia, and did not change the price for the United States, adds the newspaper.

Source: RIA