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Asia Faces Widest Saudi Oil Discount Since 2020
5 Oct
Summary
- Saudi Arabia unexpectedly cut November crude oil prices for Asia.
- The discount for November is the widest since June 2020.
- Prices were raised for Europe and the Mediterranean; unchanged for the US.
Saudi Arabia has implemented unexpected cuts to its November crude oil prices for Asian customers, establishing the widest discount since June 2020. The official selling price for Arab Light crude to Asia was set at $5 a barrel below the Oman and Dubai averages, a reduction of $3 from the previous month.
This pricing strategy contrasts with market expectations and a Reuters survey that predicted a $3 per barrel increase. Saudi Aramco also deepened discounts for heavier crude grades destined for Asia, including Arab Medium and Arab Heavy, by $5 a barrel.
In parallel, Saudi Aramco has raised November oil prices for northwest Europe by $3 per barrel across all grades, following the resumption of exports from the Red Sea port of Yanbu. Prices for buyers in the United States were kept unchanged.
This announcement follows the OPEC+ agreement on Sunday to maintain November oil production targets steady, indicating no immediate changes to output policy are anticipated until next year.
