Saudi Arabia's "Oil-Weapon" Hits Europe

zerohedge.com / by Tyler Durden / on 10/12/2014 17:02
We first exposed the “secret” US-Saudi deal in September which led to the inevitable bombing of Syria. We then progressed to explain the quid pro quo of the deal in lower oil prices (benefiting US consumers into an election and crushing Russian revenues). In today’s Wall Street Journal we get the final piece of the puzzle as it is clear that what Saudi Arabia loses in ‘price’ it will make up in ‘volume’ as The Kingdon is taking the unusual step of asking buyers to commit to maximum shipments if they want to get its crude. Simply put, “they are threatening [European] buyers” to discontinue sales if they don’t agree with the full fixed deliveries. The ‘oil weapon’ grows stronger…
As The Wall Street Journal explains,

 Days after slashing prices in Asia, Saudi Arabia is now making an aggressive push in the European oil market, traders say.

The kingdom is taking the unusual step of asking buyers to commit to maximum shipments if they want to get its crude.
“The Saudi push is not just in Asia. It’s a global phenomenon,” one oil trader said. “They areusing very aggressive tactics” in Europe too, the trader added.

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