Saudi is the biggest crude exporter in the whole world.
Government-owned Saudi ARAMCO reduced the markdown for Arab Light grade crude making May pricing higher by 30 cents higher than April. It also raised prices of four other grades it exports to Asia.
In a forum at Riyadh last March 23, Oil Minister Ali al-Naimi Global declared demand for crude is improving and his country can fulfill demand from any nation. Saudi Arabia was pumping an almost exceptional level of roughly 10 million barrels daily.
ARAMCO as well as other oil producers in the Middle East reduced pricing to Asia so it can compete with Africa, Latin America and Russia. As a rule, gulf countries sell to Asian refiners under long-term contracts through a premium or price cut to the standard of regional benchmarks such as Dubai and Oman oil.
According to oil market analysts from Kuwait, Saudi Arabia has developed substantial market share in the region and are not bothered by competition from other crude oil suppliers. It is the main reason why Saudis can bring up selling prices to a certain extent.
However, the country should be prepared to fortify its status in Asia because producers from Latin America also have the capacity to ship more oil to the region.
There are other alternatives for Asia in terms of sourcing oil supply, analysts added. The market share of Saudi Arabia can drop by 2020 in case it does not augment exports to Asia.
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