Iran-US War: Neither Iran, nor America, this country’s dominance in selling oil still persists

Oil is also in the news because of the warring country Iran because Iran is also included in the list of major oil producing countries. The world consumes more than 16 billion liters of oil every day. This oil is mainly used in road transport, air travel, shipping, industry, petrochemicals and some areas of power generation. The countries that consume the most oil include America, China, India, Japan, Russia and Saudi Arabia. Oil is still the backbone of the world economy.

Now the question is who sells oil to most countries in the world? How many countries does it sell to? Who are the world’s major oil exporters and importers? Let us understand in detail.

Country selling oil to most countries

Saudi Arabia has the capacity to deliver crude oil and oil products to most countries of the world. The reason for this is not just production. This is due to huge reserves, very low cost of production, long established export infrastructure, easy access to sea routes and a stable customer network spread across Asia, Europe and to some extent America.

Saudi Arabia sells oil to dozens of countries at different times. This number varies depending on market conditions, restrictions, production cuts, refinery demand and trade contracts. Practically speaking, Saudi Arabia supplies oil to about 30 to 40 or more countries directly or through trade channels. Many times the oil goes directly to government companies. Many times it moves through trading companies, refineries or third countries. In such a situation, it is very difficult for any agency to give exact numbers. But it is a universally accepted fact that Saudi Arabia is the largest supplier country.

Why is Saudi Arabia such a big seller?

There are many reasons for Saudi Arabia being a big supplier. Saudi Arabia has the world’s largest proven oil reserves. This gives it the strength to supply continuously for a long time. This country can extract oil at relatively low cost. Low cost means it remains competitive even when prices fluctuate. It has a strong port, terminal, pipeline, storage and shipping network. Due to this the supply remains regular. Big consumers like China, India, Japan and South Korea are in Asia. Saudi Arabia has been fulfilling a large part of the needs of these countries. Refineries of many countries are built according to Saudi grade oil, so they buy Saudi oil for a long time.

Who is the world’s top oil exporter country?

The list of global oil exports keeps changing from time to time, but generally the names of these countries come at the top.

• Saudi Arabia: It has long been among the top oil exporters. Its main market is Asia.
• Russia: Russia is the world’s largest oil producer and exporter. After Western sanctions on it, the structure of its buyers changed, but its export is still very large.
• Iraq: Most of Iraq’s oil exports go to Asian markets. Its economy is largely dependent on oil.
• United Arab Emirates: This country is a big exporter, especially through Abu Dhabi. Its supply is considered reliable.
• Canada: Canada is a big oil exporter, but its biggest buyer is America. Its geographical location makes it different.
• America: America is a big producer as well as exporter. Its export has increased a lot after the shale oil revolution. However, America itself imports oil because different grades of oil are required.
• Kuwait: Kuwait is a relatively small country, but its role in oil export is very big. It mainly sells oil to Asia.
• Norway: Norway is Europe’s leading oil and gas exporter. Its supply is important for European countries.
• Kazakhstan: It is an important exporter of Central Asia. Its oil goes to Europe and other markets.
• Nigeria: Africa is a major oil exporter. Its oil goes to Europe, Asia and some other markets.

Which oil do we buy from these countries?

Now the question is who buys oil from these big exporters? This purchase also does not remain constant. Still, the main pattern is clearly visible.

• Saudi Arabia: The major countries buying oil from Saudi Arabia are China, India, Japan, South Korea, Pakistan, Thailand, Taiwan, Indonesia, Malaysia. Some European countries and sometimes America also take oil in limited quantities. The biggest attraction of Saudi oil is its reliable supply and stable quality.
• Russia: The major countries that buy oil from Russia include China, India, Turkey, some Central Asian countries, some African and Latin American buyers. Before the sanctions, many European countries were also big buyers. Russian oil remains attractive to some countries as it is often available at discounted rates.
• Iraq: Major countries purchasing oil from Iraq include India, China, South Korea, Italy, Greece, America and many Asian refineries. Iraq’s oil is considered suitable for many Asian refineries.
• UAE: Major countries purchasing oil from UAE include Japan, China, India, South Korea, Thailand, Singapore and some countries of Europe. The specialty of UAE is that it is also a big center of trade, storage and refining.
• Canada: America is the biggest buyer of oil from Canada. Some quantity is also exported to Europe and Asia. Canada’s export structure is US-centric. Pipeline and border proximity are the main reasons for this.
• America: The major countries buying oil from America are India, South Korea, Netherlands, Britain, Singapore, Spain and Italy. American oil is purchased especially when the demand for light sweet crude oil increases in the market.
• Kuwait: The major countries buying oil from Kuwait are India, China, Japan, South Korea, Taiwan and Pakistan. Kuwait’s export policy has long been focused on Asian markets.
• Norway: Major countries buying oil from Norway include Britain, Germany, Netherlands, Sweden, Denmark and other countries of Europe. Norway is considered a reliable and politically stable supplier to Europe.
• Nigeria: The major countries that buy oil from Nigeria are India, Spain, France, Netherlands, Indonesia and some Americans and Asians. Nigerian oil is available in grades suitable for some refineries.

Why do buyers keep changing countries in oil trade?

The oil market is not stable. Many reasons change buyers. Wherever cheap oil is available, refineries will go there. Not every oil is the same. Some oils are light, some heavy. Some have less sulfur, some have more. The refinery buys accordingly. Sanctions, wars, tensions and diplomacy also affect oil trade. Shipping costs matter a lot. A nearby supplier is often beneficial. Not every refinery can handle every type of oil, so buyers are left with limited options.

Does only one country sell to most countries?

In the practical sense of business, it is difficult to give a direct answer to this in one line. The reason is that oil is sold directly as well as through trading houses. Many times the oil of the exporting country gets mixed in a third country and then goes further. Therefore, the number of countries selling the most is an estimated category and not a monthly record. Still, if we talk about a large, stable, multi-country and long-term network, then Saudi Arabia is considered the strongest contender. Russia is also a big exporter, but its trade has been more affected by political circumstances. America has also rapidly become a major exporter, but its customer network varies according to grade, distance and business status.

In simple words, oil trading is not just a game of production. This is the combined result of geography, politics, cost, quality and reliable supply. If a country has oil, but the supply is not reliable, it cannot become a top exporter for long. This is why countries like Saudi Arabia still remain at the center of the global oil market.

Also read: Where are the oil wells in India, how did the discovery in Assam open the way?