Saudi to expand its European market amidst rising fuel prices; signs three agreements with Poland

Riyadh/Warsaw: – While the fuel prices are increasing on the international level, Saudi has initiated steps to expand its market. Saudi signed three fuel agreements with Poland, one of the leading European countries. Sources indicated that these agreements can increase fuel supply to Poland and central and eastern European countries. Russia is known as the leader in fuel supply to Europe. Against this background, Saudi moves to expand its market in Europe become significant.

On Wednesday, leading Saudi oil company ARAMCO and the Polish company, PKN Orlen signed fuel agreements. As per the agreements, ARAMCO will be purchasing a stake in the Jet Fuel Unit and Associated Wholesale Business of the Polish company. Moreover, both the companies will be working jointly to exploit the opportunities available in the fuel business in central and eastern Europe. Along with ARAMCO, SABIC company from Saudi also is a part of this agreement.

The agreement has also indicated building research and development projects in the European fuel sector. The crude oil supply from Saudi to Poland will increase to about 350,000 barrels per day. Currently, the supply is only 100,000 barrels per day.

Hungary also is a participant in the agreement between Saudi and Poland. Both Poland and Hungary are known to be Russian customers for fuels. At the same time, Russia is the fuel supplier to many countries in central and eastern Europe. Against this background, Saudi expanding its activities in the Russian sector of influence in Europe becomes significant. Earlier, Russia increased its oil exports by signing fuel agreements with the Asian countries purchasing oil from Saudi Arabia. With the oil rates at USD 80 per barrel and tensions reigning between the European countries and Russia, Saudi is starting to supply fuel to European countries. Analysts claim that this issue could cause competition and even disputes between Saudi Arabia and Russia.