putting pressure on russia and syria and iran. they have flooded the market with cheap oil.. forcing a price war... shale oil break even points is not their concern in this equation.. the picture is far bigger... as much as i would love to get some SEA, and i may well buy in it again one day should the WTI reverse dramatically to economic numbers.. and the oil bear market ends.. but its hard to have a buy recommendation on a share in free fall.. imho it remains firmly a sell until this suadi induced oil price plunge ends.. and imho it wont end until it seeks out and destroys its objective targets..
Days after slashing prices in Asia, Saudi Arabia is now making an aggressive push in the European oil market, traders say.
The kingdom is taking the unusual step of asking buyers to commit to maximum shipments if they want to get its crude.
“The Saudi push is not just in Asia. It’s a global phenomenon,” one oil trader said. “They are using very aggressive tactics” in Europe too, the trader added.
This month, state-owned Saudi Aramco stunned the rest of the Organization of the Petroleum Exporting Countries by slashing its November prices to defend its market share in Asia’s growing market. The move, setting a price war in the oil-production group, was combined with a boost in the kingdom’s output in September.
But Riyadh is also moving to protect its sales to Europe, a declining market where it is facing rivalry from returning Libyan production.
After cutting its November prices there, Saudi Aramco is also asking refiners to commit to full, fixed deliveries in talks to renew contracts for next year, the traders say. They say the Saudi oil company had previously offered a formula allowing flexibility of more or less 10% of contracted volumes, the most commonly used in the industry.
“They are threatening buyers” to discontinue sales if they don’t agree with the fixed deliveries, another trader said.
SEA Price at posting:
$1.11 Sentiment: Sell Disclosure: Not Held
