The U.S. Grabs Saudi Market in Oil
Saudi Arabia snatches the first position in oil exports from the US
Saudi Arabia has once again become the world’s largest oil exporter.
Jeddah (June 17, 2020) Lockdown and transport disruptions caused by the Corona epidemic affected oil supplies around the world, causing the economies of oil-exporting countries, including Saudi Arabia.
Was severely damaged. Prior to the Corona epidemic, the United States was the largest exporter of oil. But in the last four months, Saudi Arabia has snatched the number one position from the world by selling the most oil in the world.
Largest oil exporter
According to News, Saudi Arabia has once again become the largest oil exporter in the world after fluctuations in the global oil market. The oil market has changed dramatically in the last three months. Since then, Saudi Arabia has regained the top position in US oil exports last year.
Industry experts say oil prices fell sharply in April 2020 due to a lockdown caused by the coronavirus.
After that, Saudi Arabia exported a record 11 million barrels of oil per day, while the United States exported about 8.6 million barrels a day. Later, in May, the two countries signed a landmark OPEC Plus agreement. Saudi Arabia’s oil exports are the largest, despite a drop in exports.
The second quarter of the Middle East Economic Survey shows that Saudi Arabia was at the forefront of production in the second quarter of 2020.
Brent crude, which has world-class status, has returned above 40 40, while West Texas Intermediate is priced at 37 37. The International Energy Agency (IEA) said in a report that oil demand in 2020 is higher than expected. More reductions are predicted. The biggest drop in oil demand to date will be 91.7 million barrels per day, which is lower than previously predicted.
The International Energy Agency (IEA) has said that the decline in oil demand due to the dire situation of the airlines will have to wait until 2022 to return to the same demand as before the Coronavirus. The report from the International Oil Agency said, “Although the oil market is in a precarious position, the first half of 2020 has been more optimistic than the recent modest rise in prices.
“Steps in the form of the OPEC Plus Agreement and the G20 Energy Ministers’ Meeting have played a key role in restoring stability in the oil market.” Will hold talks to review, it is hoped that this could be extended by at least a month.