Saudi Aramco cuts oil prices for Asia to a 6-year low — The National
Saudi state-owned company Saudi Aramco has cut the price of its flagship Arab Light crude for buyers in Asia to a six-year low. In November, the company will sell this oil at a discount of $5 per barrel to the regional benchmark, compared with a $2 discount in October. This was reported by The National.
Prices for the Asian market
According to a Bloomberg survey, traders and refiners expected Saudi Aramco to raise November prices by $5 per barrel instead. At the same time, the company increased its November oil price for European buyers by $3 per barrel, while leaving it unchanged for the United States compared with October.
The price cut for Asia may indicate Saudi Arabia's intention to increase sales in this market amid the recovery of oil flows from the Middle East. Supplies are recovering after several months of disruptions related to the war surrounding Iran.
More current news is available on the UA.News Telegram channel Telegram.
Recovery of supply routes
Despite continuing attacks on vessels in and near the Strait of Hormuz, the volume of oil passing through this waterway has increased in recent months. In mid-September, Saudi Arabia sold nearly 100 million barrels of oil to Asian buyers, helping avert the threat of supply shortages.
The kingdom has also restored a significant part of oil transportation through the East-West pipeline, which was previously damaged in an attack. This route connects Saudi Arabia's eastern oil fields with the port of Yanbu on the Red Sea and allows oil to be exported bypassing the Strait of Hormuz. According to a JPMorgan estimate cited by Bloomberg, shipments from the Middle East have already reached 98% of their pre-war level.
Ports for shipments
Saudi Aramco's official prices apply to oil supplied to refineries under long-term contracts. Cargoes are usually collected in Ras Tanura on the Arabian Gulf coast. Due to risks to shipping in the Strait of Hormuz, the company asked Asian refineries to submit applications for November volumes from ports in the Arabian Gulf, Yanbu, and Sidi Kerir in Egypt on the Mediterranean coast.
