Saudi Arabia Slashes November Oil Prices to Asia
Saudi Arabia has taken an unexpected move by cutting its November crude oil prices for Asian buyers while raising them for customers in northwest Europe and the Mediterranean. The state oil giant Saudi Aramco set the November Arab Light crude official selling price (OSP) to Asia at $5 a barrel below the average of Oman and Dubai prices, marking a $3 drop from October. This discount is the widest since June 2020, according to Reuters data.
The decision contrasts with market expectations of a $3 a barrel increase for November, as indicated by a Reuters survey. Aramco also made deeper cuts of $5 a barrel for heavier crude grades, Arab Medium and Arab Heavy, sold to Asia. The move comes as Aramco seeks to protect its market share amid regional conflicts affecting exports and record freight rates.
Meanwhile, Saudi Aramco raised November OSPs for northwest Europe by $3 a barrel across all grades after resuming exports from the Red Sea port of Yanbu. Prices for U.S. buyers remained unchanged. The OPEC+ group, including Saudi Arabia, agreed to maintain steady oil production targets for November, with no further output policy adjustments expected until next year.