OPEC+ Completes Quota Unwind, but Gulf Exports Remain Constrained

OPEC+ has completed the reversal of approximately 3.5 million barrels per day (bpd) in 2023 production cuts, but Gulf physical exports remain roughly 40% below pre-war levels.

Saudi Aramco cut its Arab Light official selling price to Asia to a six-year low for September and asked Asian buyers to submit contingency crude nominations from ports outside the Strait of Hormuz, hedging against disruption to its primary export route.

The premium for barrels with lower logistics exposure over those with lower production costs alone is increasing as global oil demand is on track for its first annual decline since 2020, and Gulf crude exports remain constrained.