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Saudi Arabia Slashes Crude Oil Prices for Asia in Historic Move
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CNBC Awaaz•05-10-2026, 08:21
Saudi Arabia Slashes Crude Oil Prices for Asia in Historic Move
- •Saudi Arabia has significantly cut crude oil prices for Asia for November, marking the largest discount since June 2020.
- •The official selling price for Arab Light crude is set $5 per barrel below the average of Oman and Dubai, a $3 reduction from last month.
- •A Reuters survey had anticipated a $3 per barrel increase for Asian prices in November, but Saudi Arabia opted for a cut instead.
- •Saudi Aramco considered offering discounts to preserve market share, especially after exports were impacted by regional conflict.
- •Oil prices for Northwest Europe were increased by $3 per barrel across all grades, while prices for US buyers remained unchanged.
Key Questions Answered
Saudi Arabia has set the official selling price of Arab Light crude for Asia in November at $5 per barrel below the average price of Oman and Dubai, representing a $3 reduction compared to the previous month.
Instead of a $3 per barrel price increase that was expected by a Reuters survey based on rising Middle East benchmarks, Saudi Arabia unexpectedly cut its oil prices for Asia.
Saudi Arabia and other OPEC+ members agreed to keep the oil production target for November stable, with market observers believing further changes in production policy are unlikely until next year.
