Saudi Arabia unexpectedly cuts November oil prices to Asia to 6-year lows
The official selling price to the region is below the average of Oman and Dubai benchmark prices
Published Mon, Oct 5, 2026 · 10:02 AM — Updated Mon, Oct 5, 2026 · 11:54 AM
[CAIRO] Saudi Arabia unexpectedly cut its crude oil prices for Asian buyers for November loadings to six-year lows, while raising official selling prices (OSPs) for north-west Europe and the Mediterranean, and keeping prices unchanged for the US.
The world’s largest Middle Eastern crude exporter set the November Arab Light crude oil OSP to Asia at US$5 a barrel, below the average of Oman and Dubai benchmark prices, representing a US$3 drop from the previous month.
The discount for November marks the widest price differential for Arab Light to Asia since June 2020, according to Reuters data.
The decision came as a surprise to market participants, who had expected a price hike of up to US$5 a barrel for the November OSP in a Reuters survey, following recent gains in Middle Eastern benchmarks.
State-owned oil giant Saudi Aramco made even steeper cuts of US$5 a barrel for the November OSPs of its heavier grades – Arab Medium and Arab Heavy – sold to Asia.
The sharp cuts appear aimed at compensating Asian buyers for elevated freight costs and protecting Saudi market share following disruptions caused by the US-Israeli war against Iran, according to three Asian refining sources.
Aramco has also been exploring discounts for crude loaded off Oman to offset record freight rates.
The cost of booking a Very Large Crude Carrier capable of hauling two million barrels of crude from the Persian Gulf to China on a time-charter basis touched US$1.2 million a day on Friday (Oct 2), up from approximately US$80,000 a day a year ago.
One source noted that lower OSPs could additionally compensate buyers for longer voyages and loading delays for Saudi crude exported via the Egyptian port of Sidi Kerir.
Since September, Saudi Aramco has conducted millions of barrels in ship-to-ship crude transfers outside the Strait of Hormuz, restoring oil flows to pre-conflict levels.
The kingdom also resumed crude loadings at the Red Sea port of Yanbu following a brief disruption caused by a drone attack on its East-West pipeline.
Separately, Saudi Aramco raised the November OSPs for north-west Europe by US$3 a barrel across all grades, while holding prices steady for customers in the US. REUTERS
