Saudi Arabia more than doubled Russian oil imports in the second quarter, freeing up their own crude for export

[Corruptistan]

https://twitter.com/x/status/1549109062276620291

So it seems that the Biden visit to KSA, talk of an Arab-Israeli alliance, Middle Eastern NATO and what not was pretty much a US failure.

Now this blatant slap in the face of the US/West in terms of sanctioning/isolating Russia.

I think that even nominally US-alligned/non-hostile Arab states realize which way the wind is blowing.

Another thing, given the huge potential of renewables in KSA, why is KSA even using oil as a source of energy (electricity) for domestic use? Is it due to it being a dirty cheap source of energy? I guess so.

I once read that most of Saudi Arabia’s gas is used domestically as well with almost no gas exports. Why is that the case? Makes little sense frankly with next door gas superpower Qatar as an example of a major gas exporter.

 

[Corruptistan]

Russian Fuel Oil Is Too Cheap For Saudi Arabia To Resist​

Editor OilPrice.com
Fri, July 15, 2022, 8:30 PM

Russian fuel oil exports to Saudi Arabia rose almost twofold during the second quarter as the Saudis sought to free up more local crude for export while using the discount imports for power generation.

According to Reuters data, Saudi Arabia imported some 647,000 tons of Russian fuel oil between April and June, compared with 320,000 tons a year earlier.

Saudi Arabia is one of the relatively few countries that use crude oil for power generation, although it has taken steps to reduce this amount by boosting its natural gas output and switching power plants to gas, so there is more crude left for exports.

The discounts in Russian oil and fuel exports due to sanctions have made Russian fuel oil a preferred feedstock for power plans during peak demand season in the summer.

This increased reliance on Russian fuel, however, is likely to make President Biden’s task to convince Saudi Arabia to join an oil price cap on Russian oil and fuels all the more challenging.

The Saudis already have a close working relationship with Russia, and signing up for the U.S.-led oil price cap will kill this relationship.

Saudi Arabia is not the only one increasing its intake of Russian fuels, either. Bloomberg reported earlier this week that Russian diesel and other fuels that are being shunned by European buyers for fear of sanction violation are being redirected to the Middle East.

Some analysts expect the flow of fuels from Russia to the Middle East to continue growing during the second half of the year as well. As of June, Russian fuel exports to the Middle East had reached 155,000 bpd, after rising for five months in a row, Bloomberg said, quoting Vortexa data.

So far in July, shipments of fuels from Russia to Middle Eastern buyers are running at an average of 220,000 bpd, the data also showed.

By Irina Slav for Oilprice.com

Russian Fuel Oil Is Too Cheap For Saudi Arabia To Resist

Saudi Arabia has doubled its imports of Russian fuel oil as it looks to export its domestic crude while using discounted foreign fuel for power generation

finance.yahoo.com

 

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Smart People, buy cheap oil for local consumption and export your oil for higher prices.