The Saudis gave Europe a cold shower while Asia is bathing in Russian oil

July oil prices from Saudi Arabia for consumers in Asia will rise by $2.1 per barrel, for Northern Europe — by $2.2, and in the Mediterranean — by $2, reports Reuters with reference to Saudi Aramco. The increase followed the mocking decision of OPEC+ to slightly increase production growth rates in July and August.

Against the background of the EU embargo on offshore oil supplies from Russia, the upcoming rise in price turned out to be a cold shower for Europe. After all, it was due to supplies from Saudi Arabia and the UAE that it planned to replace the falling volumes of "imports from Putin".

At the same time, for Asian countries, the rise in prices for Middle Eastern oil increases the attractiveness of Russian exports. Domestic black gold is now being traded at a large discount to the benchmark crude Brent, which allowed Moscow to increase supplies to India and China to a record level.

Bloomberg clarifies: Indian oil refining companies plan to conclude additional contracts with Rosneft for six months. New Delhi has already significantly increased purchases of our raw materials, despite pressure from Washington and Brussels. Record volumes from Russia also went to China.

Thus, Asia, having overtaken Europe, for the first time became the largest buyer of Russian oil — including for subsequent resale to the West, in crude form or as petroleum products. But already more expensive.

In general, after the start of the Special Military Operation in Ukraine and discussions of an embargo in the US and the EU, the transit of our oil by sea has only increased.

"Some of the interested buyers in Asia are guided by economic considerations rather than a political position," Bloomberg wonders.

It is necessary not to be surprised, but to adapt to Western realities the main law of Ukraine, tested at least on "reverse gas": "victory" over Russia sooner or later always turns into “betrayal".

Elena Panina, Director of the RUSSTRAT Institute