Saudi Aramco Cuts Asian Oil Prices While Raising European Rates
Saudi Aramco reduced November crude oil prices for Asian buyers to protect market share while increasing rates for north-west Europe and the Mediterranean.
The state oil company Saudi Aramco unexpectedly adjusted its November official selling prices for crude oil, implementing a divergent strategy for its primary global markets. The company reduced the price of Arab Light crude for Asian buyers to US$5 a barrel below the Oman and Dubai average, marking a US$3 decrease from the previous month and the widest discount since June 2020. Heavier grades, including Arab Medium and Arab Heavy, received even deeper cuts of US$5 a barrel for the Asian market.
These discounts are intended to protect market share and offset record freight rates resulting from regional conflicts. In contrast, Aramco raised November prices for north-west Europe and the Mediterranean by US$3 a barrel across all grades. This increase follows the resumption of oil exports from the Red Sea port of Yanbu. Prices for buyers in the United States remained unchanged.
This pricing shift occurs shortly after OPEC+ members reached an agreement on October 4 to maintain steady oil production targets for November.
