Saudi exports of oil to Poland alarm Russian oil companies
The Polish company Orlen has entered into a contract to receive oil from Saudi Arabia, provoking anxiety among Russian oil companies, as reported by Radio Poland. It is the first contract of its kind in Eastern Europe and may be followed by more. This can call into question the positions of traditional suppliers from Russia, headed by Rosneft.
The head of Rosneft, Igor Sechin, has been afraid of this scenario since October of last year, the edition notes. He warned that the reduction of prices by Saudi Arabia would lead to Russia losing its traditional place in the oil market. Sweden and Finland are also interested in purchasing oil from Saudi Arabia; trial deliveries have already begun there.
The Russian Ministry of Energy asked domestic companies to refrain from panicking. According to the Deputy Minister of Energy, Anatoly Yanovsky, the influence of low prices from Saudi Arabia in Eastern Europe will be short-term. Earlier the Minister of Energy, Alexander Novak, stated that competition in the market is a normal phenomenon and that in the second half of the year supply and demand would balance.
The Polish oil company Orlen has signed a contract with the Saudi company, Aramco, for the delivery of Saudi oil to Poland. The contract will remain in effect from May 1 to December 31, 2016 and will be automatically extended in the future. Oil will be delivered to Orlen oil refineries in Poland, the Czech Republic and Lithuania.