Alexey Druzhinin/AFP
CNBC: Saudi attacks could push European oil supply closer to Russia
* Oil prices spiked more than 10% Monday following the drone attack against Saudi interests over the weekend.
* If there is an extended Saudi outage that lasts more than six weeks, prices of Brent crude could rise about $75, Goldman Sachs warned Monday.
* The EU imports 6.6% of its crude oil from Saudi Arabia and 27.3% from Russia, but it could boost its energy dependence on Russia if supplies from the kingdom stall.
Although Europe’s energy dependence on Saudi Arabia is very small, the effects of a prolonged decline in oil production could have a serious impact on European economies. The obvious impact will be the increased fuel-supply costs and the consequent effect on oil and gas prices, but the most serious political side effect could be an increase in the EU’s energy dependence from Russia.
The stability of the EU’s energy supply is already fragile, as most of the fuel imports to the European continent come from a few countries. In 2018 almost 27.3% of the EU’s crude oil imports came from Russia, and a small proportion, 6.6%, came from Saudi Arabia.
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Update: Russia says global oil stockpiles will cover Saudi shortfalls (The National)
WNU Editor: Tight oil supplies and high oil prices is nirvana for the Kremlin. It means the EU will need to go to Moscow to insure stable energy supplies, as well as China and other major Asian economies.
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