Qatar is paying the price for Saudi Arabia’s oil strategy in Asia

      Published on Sunday, 4 February , 2018      283 Views     
Qatar is paying the price for Saudi Arabia’s oil strategy in Asia

  • Doha News

Tiny oil cartel Opec crude producer Qatar is paying the price for top member Saudi Arabia’s oil strategy in Asia.



Last year, oil exports from Qatar to Japan slumped by almost a quarter to its lowest level since 1990, while shipments from giant supplier Saudi Arabia grew 8.1%, boosting its market share in the Asian nation to a record figure.

Over in South Korea, imports from Qatar sank 26% to the lowest in seven years.

The diverging fortunes may be a reflection of Saudi Arabia’s strategy to retain market share in Asia, the world’s biggest oil-consuming region, while leading oil-production cuts by Opec to clear a global glut. Stakes remain high, with oil prices still languishing at about 40% lower than their peak in 2014.

The Saudis have been making bigger supply curbs to the US and Europe while largely sparing Asia from the reductions, as the kingdom sees better profits in the region.

This is enabling it to nudge out smaller rivals, according to the Japan Oil, Gas and Metals National Corporation (Jogmec).

“Qatar is suffering from the repercussions of Saudi’s sales strategy,” Takayuki Nogami, the chief economist at state-backed Jogmec, said by phone. “With crude prices still much lower than their peak, losing sales volume to Japan and South Korea is a double blow to Qatar.”

Japan’s crude imports from Qatar fell 23% to 86-million barrels in 2017, according to data from the ministry of finance. South Korea’s imports from the nation fell to 65-million barrels last year, the lowest since 2010, according to data from state-run Korea National Oil Corporation.

From Saudi Arabia, shipments to Japan rose 8.1% last year, while market share rose to a record 40.2% in 2017. South Korea’s crude imports from Saudi Arabia slipped 1.6% to 319-million barrels, down from the highest — seen in 2016 — since at least 1980.



Bloomberg

Keywords:
Category Doha News | 2018/02/04 latest update at 3:15 PM
Source : | Photocredit :
284 Views
Comments Add comment



Gulf Media

Related Articles

The editorial staff of Qatar Today would like to give all of its readers from Gulf and Qatar and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Qatar Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Qatar, the Gulf and the world.


Amir congratulates President of Colombia Emir

Amir congratulates President of Colombia

Amir H H Sheikh Tamim bin Hamad Al Thani, Deputy Amir H H Sheikh Abdullah bin Hamad Al…

Iran’s Rouhani Says Boosting Ties With Qatar A Priority Emir

Iran’s Rouhani Says Boosting Ties With Qatar A Priority

Iranian President Hassan Rouhani described enhancement of relations with neighbors, Qatar in particular, as an indispensable part of…

Amir performs Eid Al Fitr prayer; receives well-wishers Emir

Amir performs Eid Al Fitr prayer; receives well-wishers

HH the Amir Sheikh Tamim bin Hamad Al-Thani performed Tuesday morning Eid Al Fitr prayer with citizens at…

Amir receives written message from Saudi King Emir

Amir receives written message from Saudi King

Amir H H Sheikh Tamim bin Hamad Al Thani has received a written message from the Custodian of…

GULF TV

Popular in GULF TV

About DFI

26539 Views

Doha Film Institute is dedicated to film appreciation, education, and building a dynamic film industry in Qatar that…

Latest videos in GULF TV

Events

Qatar Events

Lifestyle

Life

Culture

Culture News

Sport

Sport

Science & Technology

Science & Technology

Government

Government News