Saudi Arabia cuts oil price

Baku. 3 March. REPORT.AZ/ Saudi Arabia initiated oil price drop in global market. 

Report informs referring to Vestifinance.ru, S. Arabia made discount in oil prices for all its buyers. Asian buyers got major discount (0.3 USD/barrel), about 2 USD/barrel below average price in last 7 years.

This decision of Riyadh surprised oil market participants, as they have been trying to raise oil prices since end of last year. Experts consider this decision as indication of lost leadership in Asian market. Notably, in February Russia surpassed S. Arabia in China, the major Asian market.

OPEC and other oil exporting countries agreed to cut output in November 2016. Reduced output and rising prices revived US shale oil producers. Thus, the oil output in US exceeded 9 mln barrels/day. In its turn, Saudi Arabia says they cut the output by 717.6 mln barrel/day to 9.748 mln barrel/day. It overfulfilled obligation, which demanded to drop output to 10.058 mln barrel/day.