Saudi Arabia Increases Purchases of Cheap Oil from Russia Tenfold

According to results from June 2023, Saudi Arabia has purchased an average of 193,000 barrels of oil per day from Russia, which is ten times higher than last year. This is reported by Reuters, citing calculations from Kpler traders and analysts.

With these supplies, Saudi Arabia aims to secure electricity production in the summer when consumption sharply increases due to the heat. Additionally, the significantly discounted Russian fuel allows the country to maintain oil supply volumes in the global market, considering its commitment to reduce production.

Supplies of oil from Russia to Saudi Arabia have surged sharply after the EU imposed an embargo on the purchase of Russian oil products. In the first six months of 2023, the country acquired 2.86 million tons of oil, whereas only 1.63 million tons were purchased for the entire year of 2022.

Analysts believe that Saudi Arabia is benefiting significantly from the anti-Russian sanctions. If the purchases of oil had not occurred, the country would have used its own fuel, which would have led to a decrease in its revenues. Moreover, a portion of the oil is resold at a higher price, and by the end of July, the number of such resales could double compared to June.

On May 21, Bloomberg reported, citing statistics from Kpler analysts, that extreme heat in Southeast Asian countries has led to an increased demand for coal, gas, and oil supplies from Russia. Meanwhile, China and India continue to be the main importers of Russian raw materials.

Earlier, it was reported that Saudi Arabia and the UAE are purchasing Russian oil products at significant discounts.