Russia is the real threat to Saudi Arabia as Moscow targets key oil market, veteran analyst says

Russia is the real threat to Saudi Arabia as Moscow targets key oil market, veteran analyst says

Russian oil exports to Asia are a real threat to Saudi Arabia, said veteran analyst Paul Sankey.

That's despite Saudi Arabia's recent focus on short sellers in the oil market.

"The real issue is can the Saudis corral Russia?" Sankey told Bloomberg TV.

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Russian oil exports to Asian markets are a real threat to Saudi Arabia, which is seeing its price premiums eroded by competition, according to long-time industry analyst Paul Sankey.

Meanwhile, he gave little credence to Saudi Arabia's claims that market short sellers were behind underwhelming oil prices.

"Frankly, I don't know why they're so obsessed with speculators. I mean, you can squeeze speculators on a short-term basis. But the real problem is the overall oil balance," Sankey told Bloomberg TV on Wednesday.

On Tuesday, Saudi Energy Minister Prince Abdulaziz bin Salman cautioned short-sellers to beware of economic pain just days ahead of an OPEC+ meeting, though he did not outline specific actions.

The warning helped oil prices rally. But to Sankey, Saudi Arabia should be more focused on Russia than short-sellers.

"The real issue is can the Saudis corral Russia? Russia is