Saudi Arabia Slashes Oil Prices for Asia Ahead of November Loadings
Saudi Arabia has made an unexpected move by slashing its crude oil prices for Asian buyers ahead of November loadings, while increasing prices for European markets and holding steady for US buyers. The official selling price (OSP) for Arab Light crude to Asia was set at $5 per barrel below the average of Oman and Dubai prices, marking a $3 decrease from the previous month. This discount is the widest since June 2020, according to Reuters data, contrasting with market expectations of a $3 per barrel hike.
The state-owned oil company, Saudi Aramco, also made deeper cuts of $5 per barrel for heavier grades like Arab Medium and Arab Heavy sold to Asia. This strategy comes as Aramco seeks to protect its market share amid regional conflicts that have impacted exports. The company has reportedly considered offering discounts for oil loaded off Oman to offset record freight rates.
In contrast, Aramco raised the November OSPs for north-west Europe by $3 per barrel across all grades after resuming exports from the Red Sea port of Yanbu. Prices for US buyers remained unchanged. The moves follow an OPEC+ decision to keep oil production targets steady for November, with no further adjustments expected until 2027.