Saudi Arabia has reduced the price of oil to China up to 14-years minimum

Almaty. February 6. Silkroadnews - Saudi Arabia has reduced the price of oil to China to a minimum of 14 years in an attempt to regain its market share, reported the RBC.
"Saudi state-controlled oil company Saudi Arabian Oil Co. (Saudi Aramco) reduced the price of oil supplied to China and other Asian countries by 90 cents per barrel",- said in a statement on Friday.
As a result, a barrel of Arab Light oil brand now stands for Asian buyers at $2.3 per barrel less than the Dubai Fateh, the price of which is a kind of standard for the Asian oil market.
It is reported that such a large discount Saudi Aramco did not provide for Asia for the past 14 years. At the same time Saudi Aramco lowered the price of other brands of oil supplied to China and other Asian countries.
As a result, the cost of Extra Light oil fell to its lowest level in 14 years, and the cost of Arab Medium came close to this minimum.
According to the US Energy Information Administration, about 70% of oil exports from Saudi Arabia goes to Asia. However, its share in this market is gradually decreasing. Oil imports from Saudi Arabia to China in 2014 fell by 8%. As a result the share of Saudi Arabia in the Chinese oil market dropped from 19% in 2013 to 16% in 2014.
Oil analyst Julian Lee explained that Saudi Arabia is not one of three largest suppliers of oil to China, but its share of the top three for the year fell from 44% to 37%, while Angola and Russia have increased their shares.
At the same time, Saudi Aramco raised oil prices for United States and Europe. In particular, the cost of a barrel of Arab Light for the United States increased by 15 cents, to $0.45 which is now more expensive than the standard.
Earlier, The Wall Street Journal reported that a reversal of Russia to the East after the introduction of Western sanctions against it, increased the supply of Russian oil to China and led to a decline in sales of other market participants.