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Saudi Arabia Slashes Oil Prices for Asia to Six-Year Low Amid Rising Flows
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CNBC TV18•05-10-2026, 07:05
Saudi Arabia Slashes Oil Prices for Asia to Six-Year Low Amid Rising Flows
- •Saudi Aramco cut the price of its benchmark Arab Light crude for Asian buyers in November to a $5 a barrel discount to the regional benchmark, down from a $2 discount this month.
- •This price reduction comes despite traders and refiners having anticipated a $5 increase from October.
- •The decision follows a rebound in oil flows through the Strait of Hormuz and the restoration of much of the East-West pipeline after an attack.
- •Crude exports from the Middle East are estimated by JPMorgan Chase & Co. to be at 98% of pre-war levels.
- •Many customers are avoiding the risky passage through Hormuz, leading producers to shuttle cargoes to the Gulf of Oman for transfer to waiting tankers.
Key Questions Answered
Saudi Aramco will lower Arab Light crude for buyers in Asia to $5 a barrel less than the regional benchmark, down from a $2 discount for the previous month and lower than what traders and refiners expected.
Passage through the Strait of Hormuz remains risky, prompting many customers to avoid the route and forcing producers to shuttle cargoes through the water to transfer them to waiting tankers in the Gulf of Oman.
Middle Eastern crude exports have increased after the Saudis restored much of the flows through the East-West pipeline following damage from an attack, with JPMorgan Chase & Co. estimating exports reached 98% of pre-war levels.
