By Lydia Tomkiw -
Saudi Arabia and Angola both beat out Russia as the largest crude oil suppliers to China in October, Bloomberg reported Monday. The world’s largest crude oil suppliers continue to battle for market share as prices remain low with experts continuing to worry that high levels of production will not change anytime soon.
“Saudi Arabia never stopped fighting for market share in China and in Asia as a whole,” said Gao Jian, an analyst at SCI International, an energy consultant, when speaking with Bloomberg. “One year after OPEC [Organization of Petroleum Exporting Countries] announced its production policy to defend market share, their strategy seems to be working.”
China has proven to be an important market for OPEC states that are trying to sell crude oil supplies during a market glut with high supplies from American shale companies entering the market. Saudi Arabia sold 3.99 million metric tons to China during October according to data from China’s General Administration of Customs. Angola sold 3.64 million tons to China while Russia sold 3.41 million tons during the month of October.
OPEC Crude Oil Basket Reference Price | FindTheData
Russia’s economy has been badly hit with the slump in global energy prices as well as the economic sanctions levied against its economy by Western nations following the annexation of Crimea from Ukraine in March 2014.
Global oil prices have fallen by 40 percent since last November as the members of OPEC prepare to meet next week in Vienna to discuss market conditions. Venezuela has said that crude prices could drop as low as the mid-$20 range unless the member states work to bring stability to the market.
Experts said they expected OPEC to maintain its current policy when the group meets Dec. 4 with sustained high output amid low prices as states try and defend their market shares, the Wall Street Journal reported.
“At 487.3 million barrels, U.S. crude oil inventories remain near levels not seen for this time of the year in at least the last 80 years,” said a report from the U.S. Energy Department.
With Iranian oil set to return to the market in coming months, experts worry supply will continue to expand, potentially further lowering prices.