It has been announced that new Russian Oil supplies currently being shipped across the Pacific Ocean will not adversely affect the price of Middle Eastern crude according to a statement made yesterday afternoon.
This was the same conclusion that had already been reached by Opec last week. Russia has started selling a new blend of crude oil which it is shipping from Kozmino in the Far East. They began supplying the market with this new crude last winter and this was their first move in a new strategy to become a supplier to the Asian marketplace.
It is estimated that by this time next month Russia will have increased its export of their new crude by almost 8% since March. While this may be causing a ripple of concern in the marketplace analysts in the Middle East feel this is no cause for concern because the price of Oil is largely determined by Market forces a major factor being the cost of transport. The Middle East still has the distinct advantage of having a vast oil supply on their doorstep which means transport costs are very low and this still makes their oil more competitive.
Last week Saudi Arabia’s Oil Minister stated that Russia’s new crude shipments via the Pacific Ocean to Asia were nothing for Middle Eastern suppliers to be concerned about. He maintains that the expanding Chinese along with other up and coming Asian markets will absorb the extra Oil supplies without upsetting the Middle Eastern market as it now stands.Andrew Reid, Staff Writer, Gulf Jobs Market News