Saudi Arabia Slashes November Oil Prices for Asia Buyers

Saudi Arabia has made an unexpected move by cutting its November crude oil prices for Asian buyers while raising prices for customers in northwest Europe and the Mediterranean. The state oil giant Saudi Aramco set the November Arab Light crude oil official selling price (OSP) to Asia at $5 a barrel below the average of Oman and Dubai prices, marking a $3 drop from the previous month. This discount is the widest since June 2020, according to Reuters data. Analysts had anticipated a $3 per barrel increase, aligning with recent gains in Middle Eastern benchmarks.

The cuts extended to heavier grades, with Arab Medium and Arab Heavy prices reduced by $5 a barrel for Asian markets. The decision comes as Aramco aims to compensate buyers for record freight rates, particularly for oil loaded off Oman, in an effort to maintain market share amid regional conflicts affecting exports.

In contrast, Aramco increased November OSPs for northwest Europe by $3 per barrel across all grades following the resumption of exports from the Red Sea port of Yanbu. Prices for US buyers remained unchanged. Meanwhile, OPEC+ members, including Saudi Arabia, agreed to maintain steady oil production targets for November, with no expected adjustments until next year.

The pricing differentials for various crude grades destined for Asia, the US, northwest Europe, and the Mediterranean were detailed in the report, reflecting the latest adjustments in oil pricing strategies.