Economics
Russia's Oil Rivalry With Saudis Masks the Bigger Iranian Threat
- Inflow of Iranian oil may cut Russian export prices in Europe
- Saudis unlikely to ship significant supplies to the region
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Competition is growing in Russia’s biggest oil market. While Saudi Arabia’s encroachment in Europe is getting all the attention, the greatest threat comes from another part of the Middle East -- Iran.
Saudi Arabia has started shipping crude to traditional Russian markets like Poland and Sweden, but supplies to Europe from the world’s largest exporter won’t increase by enough to reduce prices, said Texas-based consultant Stratfor. In contrast, a surge in Iranian exports after the lifting of sanctions could erode the value of Russian shipments to the region as soon as next year, according to KBC Advanced Technologies.