Oil Price War between Russia and Saudi Arabia Pushes Norway to Uncertainties

The fierce oil price war for European market makes the Norwegian oil industry more difficult to sustain. Statoil sells about two million barrels of oil everyday, but the company is silent about what price war in Europe means for the company and the Norwegian government revenues, according to Aftenposten’s report.

Saudi Arabia has challenged Russia’s role in the local market and Europe by offering discounts. 

Russia, on the other hand sells oil with three dollars off since November, when price war started.

Saudi Arabia has this autumn for the first time in 20 years sold oil to the Swedish refinery PEEM which is owned by a Saudi businessman. Besides the country sells to the Polish PKN Orlen refineries and Grupa Lotus, where Russia for years has been dominant suppliers. The Saudis also target oil stock in the Polish city of Gdansk.

This competition and high stock of oil in Europe contribute to generally push the price down for Norwegian oil. That way, Norwegian economy, which has a high level dependency on oil revenues, faces uncertainties.

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