Saudi injects billions in Asia to draw clients for its oil
( MENAFN ) With crude prices deteriorating by more than half in the previous two years, the Saudis and other oil-rich nations are basically fighting to lock in and guarantee customers, according to the latest reports.
Asia, which now accounts for 70 percent of Saudi oil exports, is the main battleground, so Aramco for instance is buying stakes in refineries, with deals guaranteeing most of the oil will come from the kingdom.
As Iran gets ready to boost its own exports, the Saudis prepare for a dramatic increase in its commitment to the region, seeking billions of dollars of projects and schemes in Asian countries from Indonesia to Vietnam.
The Saudis pursued a similar path in the US 30 years ago to lock in sales as crude prices plunged, purchasing into three oil-processing facilities in Texas and Louisiana since 1988, and this tactic has indeed proven to be successful.
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