Saudi Aramco Slashes Asian Crude Prices to Six-Year Low
Saudi Aramco has slashed the price of its Arab Light crude oil for Asian buyers to a six-year low, offering a $5-per-barrel discount below the regional benchmark for November. This marks a significant shift from October's $2 discount, as the world's largest oil exporter competes for market share amid recovering Middle Eastern oil flows. The move comes as oil shipments through the Strait of Hormuz have rebounded to 98% of pre-war levels, with Saudi Arabia selling nearly 100 million barrels to Asian buyers in mid-September alone.
Despite ongoing attacks on vessels in the Strait of Hormuz, oil flows have increased, allowing Saudi Arabia to restore much of its crude transport through the East-West pipeline. This alternative route, which bypasses the strait, has helped the kingdom maintain export levels. JPMorgan reported that Middle Eastern oil shipments have nearly fully recovered, reflecting the region's resilience in the face of recent disruptions.
Aramco raised its November crude prices for Europe by $3 a barrel and kept U.S. prices unchanged from October. The company has also asked Asian refiners to submit nominations for oil volumes they intend to collect from various ports, including those inside the Arabian Gulf, Yanbu on the Red Sea, and Sidi Kerir on Egypt's Mediterranean coast. Ras Tanura, one of the world's largest oil export terminals, remains a key hub for Saudi crude exports, primarily serving markets in Europe and Asia.