Saudi Arabia and Russia are in a 'crude oil price war' in India, which industries will be affected?

Being affected by? Crude oil price war? The industries that will be affected are as follows. Firstly, India's industrial development has been the biggest beneficiary, secondly, the crude oil industries of Saudi Arabia and Russia have suffered from the competition, and finally, the price war has also affected the shale oil industry.

India's smarter stance on dealing with regional conflicts has earned it a chance to deepen energy cooperation with Russia. The Saudis, for their part, are hoping to recapture the Indian market share they lost to Russian crude, and the most direct and effective way to do that is to cut prices. Russia is in dire need of a large amount of cash flow in order to ensure logistical supplies. So even if the price of crude oil sold is very low, it can only bear the pain of selling to India.

I. Helps India to increase the scale of industrial production

India has always had the dream of becoming a great power, and industrial development is the way it must go through. Cheap crude oil undoubtedly provides India with a heavenly opportunity for local industrial enterprises to expand their production capacity without any worries. Although the country's relatively backward industrial level determines its upper limit, but this can at least to a certain extent to ease the country's epidemic under the tense economic situation.

Two, not conducive to the orderly exploitation of the crude oil industry in Saudi Arabia and Russia

The consequences of blind price cuts are bound to be a loss of interest for the exporting countries, and price cuts are often accompanied by an increase in crude oil production capacity, which naturally exacerbates the shrinkage of crude oil reserves from a long-term perspective. In the two countries there are many people worried about the delay in the price war can not end, the good thing is that the sand, Russia are interested in rational negotiations to solve the current problem.

Third, the demand for shale oil exported by other countries is declining

Since the U.S. began exporting shale oil, it has had a considerable impact on other crude oil countries. The former is popular because of its lower price, and for industrialized countries cheap energy can reduce costs to a large extent. But the U.S. shale oil advantage is no longer affected by the price war, and the Russian side also intends to squeeze the U.S. out of the market through this move.

After Russia's big push into the Indian crude market, do you know where the crude that Saudi Arabia didn't sell ended up?