Saudi Aramco has sharply cut its November oil prices for Asian buyers to the lowest level in six years, while raising prices for European customers amid soaring shipping costs linked to disruptions around the Strait of Hormuz.
Aramco will sell Arab Light to Asian buyers at a $5-per-barrel discount to the Dubai/Oman benchmark in November, a $3 reduction from October and the deepest discount since June 2020.
In contrast, prices for all Saudi crude grades sold to Europe will rise by $3 per barrel. Prices for US buyers will remain unchanged.
The Asian price cut comes as shipping costs through the Persian Gulf and Strait of Hormuz have surged. Saudi Arabia has resorted to ship-to-ship transfers in the Gulf of Oman to reduce risks to its crude shipments.
