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Saudi Arabia Slashes November Oil Prices for Asia Amid Hormuz Rebound
M
Moneycontrol•05-10-2026, 07:27
Saudi Arabia Slashes November Oil Prices for Asia Amid Hormuz Rebound
- •Saudi Arabia's Aramco cut the price of its benchmark Arab Light crude for Asian buyers in November by $5 a barrel less than the regional benchmark, a significant reduction from October's $2 discount.
- •The decision comes as oil flows through the Strait of Hormuz have rebounded, and Saudi Arabia has restored much of the flows through the East-West pipeline after an attack.
- •Crude exports from the Middle East have increased, with JPMorgan Chase & Co. estimating they are at 98% of pre-war levels, despite continued high shipping costs.
- •Aramco's official pricing applies to long-term contracts, but many customers are avoiding the risky Hormuz route, forcing producers to transfer cargoes in the Gulf of Oman.
Key Questions Answered
Saudi Arabia lowered its benchmark oil prices for buyers in Asia in November as crude flows through the Strait of Hormuz increased and Middle Eastern exports rebounded to near pre-war levels.
State-owned Saudi Aramco will price Arab Light crude for buyers in Asia at $5 a barrel less than the regional benchmark for November, which is a deeper discount compared to the $2 a barrel discount for the previous month.
Because passage through the Strait of Hormuz remains risky and many customers avoid the route, producers are forced to shuttle cargoes through the water and transfer them to waiting tankers in the Gulf of Oman.
