Saudi Aramco Cuts Official September Crude Price to Asia by $2

Saudi Aramco reduced its official selling price for Arab Light crude delivered to Asia for September 2026 by $2 per barrel relative to the Oman/Dubai average, according to a document released Thursday.

This adjustment marks the lowest official selling price since June 2020. It follows a $1.50-per-barrel discount applied in August 2026 — the largest single-month cut Saudi Arabia has implemented in over two decades.

Price context and market data

The modest September discount comes amid a decline in spot oil prices last month. Data show the Dubai cash premium averaged $1.26 per barrel in July 2026, down from $2.39 in June 2026. The Oman spot premium averaged 91 cents per barrel in July, also lower than the prior month.

Alternative loading ports and supply constraints

Aramco instructed its Asian customers to submit cargo nominations for loading at Ras Tanura — its primary export terminal inside the Strait of Hormuz — by 7 August 2026. It also requested alternative nominations for loading at Yanbu or Sidi Kerir, should the Strait of Hormuz remain closed.

The company stated that available volumes from these alternate ports are limited and that only Arab Light crude will be offered through them.

Strait of Hormuz negotiations and regional tensions

Oil market participants are closely monitoring Iranian-Omani talks scheduled this week for any signals of progress toward an agreement that could lead to the reopening of the Strait of Hormuz. Approximately 20% of global oil and liquefied natural gas supplies transit through the waterway.

Red Sea attacks and rerouting impact

In a further escalation of hostilities targeting Iran, the Houthi group Ansar Allah attacked Saudi oil vessels and facilities in the Red Sea, causing a notable drop in crude shipments from Yanbu.

Following those incidents, Aramco began offering additional crude cargoes for loading at Egypt’s Sidi Kerir port on the Mediterranean Sea. This alternative route extends voyage durations to Asian refineries and increases freight costs.