Saudi Arabia cuts November oil prices for Asia

Sharp cut for Asian buyers

Saudi Aramco priced November Arab Light crude for Asia at $5 per barrel below the average of Oman and Dubai prices. The discount is $3 larger than in October and is the widest since June 2020.

The move surprised the market because a Reuters survey had indicated expectations of a $3 per barrel increase. Aramco also reduced the official selling prices of Arab Medium and Arab Heavy crude for Asian buyers by $5 per barrel.

Analysts and market participants say the lower prices could help Saudi Arabia protect its market share in Asia. High shipping costs and disruptions around the Strait of Hormuz have made crude deliveries more expensive and complicated.

Europe sees higher prices

In contrast, Aramco raised November crude prices for northwest Europe by $3 per barrel across all grades. Prices for US buyers were kept unchanged.

The company has also resumed exports from the Red Sea port of Yanbu, helping it manage shipments amid continuing regional disruptions.

Oil prices remain under pressure

Global crude prices also declined as Middle Eastern exports increased and G7 countries prepared to release 100 million barrels of oil and refined fuels from emergency reserves. Brent crude fell 0.65% to $101.59 per barrel, while US WTI dropped 1.03% to $90.12.

Despite the increased supply, continuing attacks on shipping in and around the Strait of Hormuz are keeping Brent prices above $100 and adding uncertainty to the global oil market.