Saudi Arabia cuts November oil prices for Asia to six-year low

Summary

• Saudi Arabia has unexpectedly reduced its official selling prices for crude oil to Asian buyers for November, offering the deepest discount in six years as shipping costs remain sharply elevated.
• Saudi Aramco has set the November price for its flagship Arab Light crude at $5 a barrel below the average of Oman and Dubai benchmarks.
• Aramco also lowered the prices of Arab Medium and Arab Heavy crude for Asian customers by $5 a barrel.

AI Generated Summary

Saudi Arabia has unexpectedly reduced its official selling prices for crude oil to Asian buyers for November, offering the deepest discount in six years as shipping costs remain sharply elevated.

Saudi Aramco has set the November price for its flagship Arab Light crude at $5 a barrel below the average of Oman and Dubai benchmarks. The price represents a $3 reduction from October and the widest discount since June 2020.

The decision surprised the market. A Reuters survey had indicated that traders expected Saudi Arabia to increase the price by as much as $5 a barrel, following gains in key Middle Eastern crude benchmarks.