Saudi Aramco Considers Discounts on Oil to Reclaim Lost Market Share
Saudi Aramco is considering offering discounts on its official selling prices (OSPs) for oil loaded off Oman to compensate buyers for record freight rates. The move could help Aramco regain some of the market share it has lost due to disruptions to oil shipments through the Strait of Hormuz, where Iranian tensions have slowed Saudi oil supplies since the Iran war effectively blocked the strait.
Aramco is in discussions with Asian refiners about possible discounts to its OSPs. The discount under discussion was around $9 a barrel, according to one source. Aramco has sold crude to Asian buyers at premiums of $10-$20 a barrel over its monthly OSPs for loading off Oman outside the Strait of Hormuz recently.
The kingdom has diverted exports from its Red Sea port of Yanbu after drone attacks damaged its East-West pipeline, preliminary data from ship-tracking firm Kpler showed. Crude oil exports through the Strait of Hormuz are set to reach about 7.4 million barrels per day this month. Saudi Arabia has blamed Iraq militia for the attack.