In March, many countries reduced their oil purchases due to world market conditions and general lockdown, which led to a drop in global demand and an increase in transportation prices.
Large American, Chinese, Polish, Indian, Finnish and British refineries also cut Saudi oil imports in March-April.
According to estimates by the International Energy Agency, in the coming months, global oil demand will fall by 20%, and the cost of transportation will continue to rise. And this means that the problems for world gas stations will not end at least until the end of spring.
This is very bad news for the Saudis. Since April, they plan to start up to full capacity and pump out a record 12.3 million barrels per day, filling the world markets with their oil. But how to do this when these same markets are closed?
The introduction of total quarantine in India this week can be very painful for them. The country is one of the largest buyers of Middle Eastern oil.
April-May will be decisive for the position of Saudi Arabia in oil. If they do not find a way to sell their oil, which they want to pump out unlimited, then difficult times will come for Riyadh.
They will have to win back the situation and either abandon plans to increase production, or return to the negotiating table with Russia to revive the OPEC + agreements.
Well, or continue the race, relying on its reserves and trying to hold out longer than the Russian Federation.