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Saudi Aramco Bets On Oil Supply To Europe, Trading Expansion

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Saudi Aramco aims to boost its oil supply to Europe by 300,000 barrels per day (bpd) within the next two years as it expands its trading operations there with an office opening this summer in London, a senior company executive said.Aramco, the world’s biggest oil producer, is expanding its downstream, or refining and marketing, footprint globally by signing new deals and boosting the capacity of its plants to secure new markets for its crude. The company’s trading arm has been focusing on a new processing arrangement in which it would supply European markets with both crude oil and products. Aramco is looking to finalize deals in the next two years through swapping mainly Saudi crude with oil products to supply customers in Europe and the Mediterranean, Abdulaziz al-Judaimi, Aramco’s senior vice president for downstream, told Reuters. “I am going to bet on Europe... We believe that Europe is a market that we are going to stay in for a long time,” Judaimi said in a telephone interview this week. “The whole idea is we supply crude, and we offtake refined products to supply markets like Italy, the Balkans, as well as Cyprus ... In Europe, having a virtual dedicated outlet and processing agreement is really the right winning strategy.”

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Volume over value?

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1 minute ago, Pavel said:

Volume over value?

Money knows no boundaries...

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Saudi Aramco increases crude prices (OSP) to Asia, Europe, reduces to US

Asia: June Arab light OSP up by 70 cents
US: June Arab light OSP down by 10 cents
Europe: June Arab light OSP up 80 cents
Med: June Arab light OSP up by 90 cents

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1 minute ago, francoba said:

In same time, attack after attack: Saudi Arabia say oil giant Aramco’s sites targeted

 

http://en.dailyqudrat.pk/22075/

 

Yep. By Yemen's Houthi rebels 

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We are witnessing a "new war" : attacks on tankers and oil plants. This is the beginning. Last three days - two hard attacks

 

Of course, oil price jump on after last attack

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10 hours ago, rainman said:

Saudi Aramco aims to boost its oil supply to Europe by 300,000 barrels per day (bpd) within the next two years as it expands its trading operations there with an office opening this summer in London, a senior company executive said.Aramco, the world’s biggest oil producer, is expanding its downstream, or refining and marketing, footprint globally by signing new deals and boosting the capacity of its plants to secure new markets for its crude. The company’s trading arm has been focusing on a new processing arrangement in which it would supply European markets with both crude oil and products. Aramco is looking to finalize deals in the next two years through swapping mainly Saudi crude with oil products to supply customers in Europe and the Mediterranean, Abdulaziz al-Judaimi, Aramco’s senior vice president for downstream, told Reuters. “I am going to bet on Europe... We believe that Europe is a market that we are going to stay in for a long time,” Judaimi said in a telephone interview this week. “The whole idea is we supply crude, and we offtake refined products to supply markets like Italy, the Balkans, as well as Cyprus ... In Europe, having a virtual dedicated outlet and processing agreement is really the right winning strategy.”

Next question. How long until Aramco sells to the European Union using euros instead of dollars? 

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3 hours ago, Ward Smith said:

Next question. How long until Aramco sells to the European Union using euros instead of dollars? 

Please explain how the currency used affects economics and geopolitics. I am very hazy on that. Comments from anyone else would also be appreciated. I have heard of that concern many times. 

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15 hours ago, rainman said:

Saudi Aramco aims to boost its oil supply to Europe by 300,000 barrels per day (bpd) within the next two years as it expands its trading operations there with an office opening this summer in London, a senior company executive said.Aramco, the world’s biggest oil producer, is expanding its downstream, or refining and marketing, footprint globally by signing new deals and boosting the capacity of its plants to secure new markets for its crude. The company’s trading arm has been focusing on a new processing arrangement in which it would supply European markets with both crude oil and products. Aramco is looking to finalize deals in the next two years through swapping mainly Saudi crude with oil products to supply customers in Europe and the Mediterranean, Abdulaziz al-Judaimi, Aramco’s senior vice president for downstream, told Reuters. “I am going to bet on Europe... We believe that Europe is a market that we are going to stay in for a long time,” Judaimi said in a telephone interview this week. “The whole idea is we supply crude, and we offtake refined products to supply markets like Italy, the Balkans, as well as Cyprus ... In Europe, having a virtual dedicated outlet and processing agreement is really the right winning strategy.”

Aramco knows it very well, in the long term the demand of their crude in Europe will fall, as EU go nuts over climate change, zero emissions and what nots protesting from London to Paris..... so they are trying to grab as much market share for now to take over for lost Iranian barrels and for as long as they can.They can enhance their refining operations and produce ultra clean fuels for the EU market.

 

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2 hours ago, ronwagn said:

Please explain how the currency used affects economics and geopolitics. I am very hazy on that. Comments from anyone else would also be appreciated. I have heard of that concern many times. 

Right now, the US has currency backed by nothing. Yet around the world, our paper has value, primarily because virtually all oil transactions are denominated in dollars. The petrodollars cause countries large and small to purchase dollars, usually via treasury auctions. Take that away and the intrinsic value of the dollar is halved, that distortion reverberates throughout the fiscal world as the dollar is no longer the world reserve currency and everyone rushes to the exits at the same time, dumping dollars for less and less until we look like Zimbabwe. It won't help those other countries either as their own currencies Also look like Zimbabwe. Money has value but we don't have money anymore, we have currency, and its value only appears when it's in motion. If I wasn't doing this from a mobile device I could explain more. I just found this article, it explains it well, if briefly

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