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Hence imports from outside the region are required. Middle East is the closest supplier, since other alternative sources such as West Africa have to travel much further than the Middle East and hence would be at a disadvantage due to higher associated freight costs.
From a logistics perspective, the delivered price of the Saudi oil in relatively close markets such as Singapore would be lower than delivered in Rotterdam as the marginal cost of oil at the point of shipping is the same regardless of the destination...
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Hence imports from outside the region are required. Middle East is the closest supplier, since other alternative sources such as West Africa have to travel much further than the Middle East and hence would be at a disadvantage due to higher associated freight costs.
From a logistics perspective, the delivered price of the Saudi oil in relatively close markets such as Singapore would be lower than delivered in Rotterdam as the marginal cost of oil at the point of shipping is the same regardless of the destination...
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