Saudi-Iran deal first step to boosting regional oil security prospects
But there is less optimism on additional Iranian exports, and many near-term risks remain
The Chinese-brokered deal to restore relations between Saudi Arabia and Iran may not necessarily prevent regional conflict or unlock additional Iran crude, but analysts believe it improves the long-term security of Saudi oil installations. The move will certainly be remembered as Beijing’s first big breakthrough on the Middle Eastern diplomatic scene. But is also an attempt to safeguard its oil purchases, given that it buys a lot of crude from both Saudi Arabia and Iran—even if much of the volume from the latter is not included in official statistics due to sanctions relating to Tehran’s alleged nuclear weapons programme. As a result, much of Iran’s crude trade takes place on the grey market
Also in this section
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields