Russia provides further oil discounts for better market share

According to government source, it is informed that Russia will add discounts on its Urals crude blend for defending its market share on traditional European market.
The assertion is yet another sign of Russia's willingness to cling to its markets. It is also a clear message before a meeting of the Organization of the Petroleum Exporting Countries on Dec. 4 that Russia is not willing to cut its oil production.
Traders and shipping data show that oil from Saudi Arabia, Iraq and other Middle Eastern countries has recently been shipped to Europe for the first time in many years as a fight for global market share has intensified amid declining prices.
The sources said, "We will fight for our market (in Europe). We will increase the discount on Urals. But don't think that the Saudis will easily occupy refineries which have traditionally used our oil, it's not technologically easy."
It is assumed that step to cut oil price will put pressure on Russia’s budget. The country generates half of its revenue through oil and gas.