Saudi Arabia from 2013 to 2015, inclusively, has been able to maintain its share in the oil market in nine of the 15 most important for her country, wrote on Monday the newspaper the Financial Times with reference to data on oil imports, collected by the consulting group FGE.
According to FGE, the share of Saudi Arabia in total oil deliveries to China, which in 2013 exceeded 19%, in 2015 amounted to 15%. The reason for reducing the share of Saudi Arabia increased oil supplies to China from Russia, the newspaper said. The share of Saudi Arabia in supplying oil to South Africa for three years decreased from 53% to 22% on increased supplies into the country from Nigeria and Angola. The share in deliveries to the U.S. market fell from 17% to 15% amid falling US demand in imported oil due to the shale boom. In addition, Saudi Arabia for three years lost ground to competitors in South Korea, Thailand, Taiwan and several countries in Western Europe. At the same time, the Kingdom was able to increase its share in oil supplies to Brazil, India and Japan.
The country’s share in the global market in 2015 increased slightly, but was lower than in 2013, says the FT, citing data from the Jodi database. Saudi oil in 2015 covered 8.1% of the global demand for oil. In 2014 this figure was 7.9%, but in 2013, it was 8.5%.
State oil company Saudi Aramco had not responded to a request for comment.
At the end of 2014, Saudi Arabia has set a goal to maintain their share in the oil market amid glut that caused the price collapse. After the beginning of the fall of Brent crude prices during the second half of 2014, OPEC discussed a reduction in the quota for oil production, but decided to keep it at the level of 30 million barrels per day, established back in 2011. OPEC members led by Saudi Arabia have indicated that willing to tolerate low rates, but would not concede market share to competitors. Behind the OPEC decision followed a collapse in oil prices. The cost of a barrel of Brent, which at its peak in June 2014 was $115, has fallen below $30 in January 2016, updating the 13-year low. On Monday afternoon, the futures for Brent oil for delivery in may traded at $40,35 per barrel.
FGE data show that the strategy of the country has undergone defeat in some key markets, writes Financial Times. In February, Saudi Arabia has let know that is ready to change strategy: Kingdom agreed with Russia and other exporters of freezing production at the level of January, the newspaper notes. Earlier in March, the FT citing a source, wrote that Saudi Arabia is ready to sign the agreement, even if it will not engage Iran. The latter declared his readiness to join the initiative to limit production, but only when you get to desanctions level.