Roughly 4.9 million barrels of Saudi Arabia’s daily production of crude oil goes to Asian buyers, at a time when producers eye Eastern European markets to sell their surplus output.
A number of analysts said rising Eastern European economies might help large producers market their excess reserves. They also stressed that large Asian consumers, namely China and India, are still more important to producers such as Saudi Arabia.
Khaled Abu Shadi, an oil affairs analyst, told Al-Riyadh newspaper that there are reports that the United States of America plans to target European gas markets. He added that this will leave a major impact on global markets.
Recently, Reuters indicated in a survey it conducted that surplus oil supplies in global markets amounted to 500m barrels in the first nine months of the current year.
Abu Shadi noted that large producers are bracing for a major comeback of Iranian oil exports following the lifting of international sanctions imposed on Iran over its nuclear programme.
Muhammad al-Shatti, another oil expert, said he believes that China and India are the promising markets while Eastern European markets are still growing and need too much time.
However, he emphasised that these markets could help producers export their surplus production and relieve pressure on prices.
He also indicated that almost 1m barrels of Saudi Arabia’s daily crude output goes to the United States of America and another 1m go to Europe, while the African continent accounts for only 200,000 barrels of the Saudi production.