Aramco cuts Asian crude prices sharply for November

Saudi Arabia’s state oil company, Aramco, has implemented an unexpected reduction in its official selling prices for crude oil destined for Asia for the month of November. This decision contrasts with price increases applied to customers in Northwest Europe and the Mediterranean region, according to a pricing document issued by the firm.

Aramco's Asian price adjustments

The company set the official selling price for Arab Light crude bound for Asia at a discount of $5 per barrel relative to the average of Oman and Dubai benchmarks. This represents a decrease of $3 per barrel compared to the previous month, marking the most significant discount since June 2020.

This move diverged from market expectations, which had anticipated a price hike of approximately $3 per barrel. In addition to Arab Light, Aramco reduced prices for both Medium and Heavy Arab crudes intended for Asian markets by $5 per barrel.

European and US market shifts

Conversely, Aramco raised prices for all crude grades directed toward Northwest Europe and the Mediterranean by $3 per barrel. This adjustment followed the resumption of exports from the Yanbu port on the Red Sea. Prices for buyers in the United States remained unchanged.

The strategic pricing decisions appear aimed at maintaining competitiveness and protecting market share amid rising shipping costs and regional tensions affecting export flows.

OPEC+ production context

These developments occur after Saudi Arabia and other members of the OPEC+ alliance agreed to keep their oil production targets unchanged for November. Current forecasts suggest no further modifications to production policy will be introduced before next year.