Saudi Arabia slashes November oil prices for Asia to six-year low
Saudi Arabia has announced a significant reduction in its November oil prices for Asian buyers. State-owned oil giant Aramco will lower the price of Arab Light crude by $5 per barrel compared to the regional benchmark. This marks a sharp drop from the $2 discount applied in October.
Traders and refiners had anticipated a $5 increase from October, making the actual cut a surprise. 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, boosting crude exports.
Despite the increase in oil flows, shipping costs remain high. Many customers are avoiding the Strait of Hormuz due to ongoing risks, forcing producers to transfer cargoes in the Gulf of Oman. JPMorgan Chase & Co. estimates that Middle East crude exports have reached 98% of pre-war levels.