HomeMediaLatest NewsThe Polish detour: Arabs target Russian oil market share in Europe

The Polish detour: Arabs target Russian oil market share in Europe

18 January 2022

Salikhov Marcel R. President, Principal Director on Economic Studies, Head of the Economic Department

Marcel Salikhov, President of the Institute for Energy and Finance, commented to the Izvestia newspaper about the increase in the purchase of oil from Saudi Arabia by Poland.

According to Bloomberg, the deal between Saudi Aramco and the Polish Orlen provides for the purchase by the Saudis of 30% in oil refining production on the coast of the Baltic Sea. In addition, Orlen will receive up to 337,000 barrels per day from the Arab state-owned company daily for further processing. In the future, volumes may increase to 400,000 barrels. For comparison, now they are about 100 thousand barrels per day.

President of the Institute for Energy and Finance Marcel Salikhov believes that the new contract does not mean a refusal or even a reduction in oil supplies through Druzhba.

— I think that the determining factors in this case are not transportation costs, but the size of the discount that Saudi Arabia is ready to provide under a long-term contract. Most likely, Poland will refuse tanker deliveries of Russian oil to Gdansk, and not deliveries via the Druzhba pipeline.

- I do not think that the conclusion of such a contract is connected with the stabilization of production in Russia in recent months. Production may be increased as drilling activity increases, new investment projects are introduced and the terms of the OPEC + agreement are softened. At present, Russia and Saudi Arabia have approximately equal production volumes, so competition between them can lead to some change in the structure of supplies between different markets and a change in margins, but it cannot change the structure of the market as a whole,- Marcel Salikhov said.

You will receive notifications about the release of new materials on the site. We do not share email addresses with third parties and do not spam.
Thank you!
Your application is accepted.