Saudi Arabia Slashes November Oil Prices for Asia Amid Hormuz Flow Recovery
Saudi Arabia has announced a price cut for its benchmark crude oil grade, Arab Light, to Asian buyers in November. The state-owned company Aramco will offer the oil at a $5 per barrel discount to the regional benchmark. This marks a shift from the $2 per barrel discount applied in October. Industry experts had anticipated a $5 per barrel increase for November, based on a survey of traders and refiners.
The decision comes as oil flows through the Strait of Hormuz have rebounded in recent months. Additionally, Saudi Arabia has restored much of the capacity of the East-West pipeline following an attack. These developments have led to a significant increase in crude oil exports from the Middle East. JPMorgan Chase & Co. reported last week that exports have reached 98% of pre-war levels, though shipping costs remain elevated.