Saudi Arabia has unexpectedly cut its oil selling prices for Asia in November to their lowest level in six years, while raising prices for buyers in northwestern Europe and the Mediterranean region.
Reuters reported on Monday, October 5, that the Middle East’s largest crude oil exporter set its official selling price for crude oil to Asia in November at $5 below the average of Oman and Dubai prices, down $3 from the previous month.
According to the report, data obtained by Reuters shows that the November discount is the largest since June 2020.
Meanwhile, sources familiar with the matter said last week that Saudi Aramco was considering offering discounts on oil loaded from Oman to offset unprecedented shipping costs for buyers.
Three sources in Asia’s refining sector, who spoke on condition of anonymity, said the reduction in official selling prices appeared to be aimed at offsetting higher transportation costs for buyers.
The kingdom has also resumed oil-loading operations at the Red Sea port of Yanbu after a brief disruption caused by a drone attack and the closure of the key East-West oil pipeline.
