Saudi Arabia unexpectedly cuts oil prices to Asia
The official selling price to the region is below the average of Oman and Dubai prices
Saudi Arabia surprised markets by reducing crude oil prices for Asian buyers in November, according to Reuters. The country lowered the official selling price (OSP) to the region by US$5 per barrel, compared to the average of Oman and Dubai prices, marking the largest discount since June 2020. This move was unexpected, as the market had anticipated a US$3 barrel increase in OSPs for the month, according to a Reuters survey.
Saudi Aramco, the state-owned oil company, further reduced OSPs for heavier grades of oil sold to Asia by US$5 per barrel. The discounts come as Aramco seeks to protect its market share amidst record freight rates, offering relief to buyers. In a separate move, Saudi Aramco increased OSPs for European buyers by US$3 per barrel across all grades after resuming exports from the Red Sea port of Yanbu.
Prices remained unchanged for buyers in the United States. Opec+ members had agreed on October 4 to maintain oil production levels for November, with little expectation of further adjustments until 2027.
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Also reported by 3 other outlets
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