Refineries in the United States and Europe are refusing to buy additional volumes of oil from Saudi Arabia, even though prices have been lowered, the Wall Street Journal reported, citing sources.
According to them, Saudi Arabia is having difficulty finding new buyers because of this. This is because customers face the problem of lack of storage, which makes it more difficult for them to purchase new volumes of fuel.
According to traders, demand for oil has fallen in India, which is also associated with the situation around the coronavirus.
At the same time, Russia, as noted, was able to redirect its supplies to China, where demand for oil is recovering.
The collapse in the oil market occurred after the failure of the OPEC + deal and the promise of Saudi Arabia to increase production up to 13 million barrels per day. Overall, oil prices have more than halved since the beginning of the year.
The Wall Street Journal emphasizes that by reducing prices, Riyadh expects to win a share of the Russian market, especially in some parts of Europe.