Saudi Aramco Cuts Asian Oil Prices to Six-Year Low

RIYADH: Saudi Arabia has unexpectedly cut crude oil prices for Asian buyers for November, pushing the price of Saudi crude in the Asian market to its lowest level in nearly six years, while prices for Northwest Europe and Mediterranean buyers have been increased.

According to Reuters, Saudi state-owned oil giant Saudi Aramco has set the official selling price (OSP) for its flagship Arab Light crude for Asian buyers at $5 per barrel below the average of Oman and Dubai prices for November. The price represents a $3 per barrel reduction from the previous month.

The November discount is the largest offered by Saudi Arabia since June 2020.

A Reuters survey had shown that analysts expected Saudi Arabia to raise crude prices for November by as much as $5 per barrel. However, Aramco instead announced a significant price reduction for Asian customers.

Aramco has also cut the November official selling prices of its heavier grades, Arab Medium and Arab Heavy, for Asian buyers by $5 per barrel.

Meanwhile, global crude oil prices declined on Monday amid increased crude exports from the Middle East and a decision by G7 countries to release oil from emergency reserves.

Brent crude futures fell 66 cents, or 0.65%, to $101.59 per barrel, while US West Texas Intermediate (WTI) crude declined 95 cents, or 1.03%, to $90.12 per barrel.

Last week, G7 countries agreed to release 100 million barrels of diesel and crude oil from emergency reserves and pledged not to impose restrictions on energy exports.

Shipping data showed that crude oil exports from the Middle East exceeded pre-war levels on four of the seven days during the final week of September, despite continued attacks on commercial vessels passing through the Strait of Hormuz.

Energy analysts said Brent crude remained above $100 per barrel due to continued geopolitical tensions in the Middle East and increasing attacks on commercial shipping in the Gulf.