Saudi Aramco Cuts November Oil Prices for Asia to Six-Year Low

Key Facts

1Aramco cut Arab Light crude prices for Asia in November to a $5 discount against the Dubai/Oman benchmark.

2The company raised November oil prices for European buyers by $3 per barrel across all grades.

3Freight costs for very large crude carriers soared to a record $1.3 million per day due to Hormuz Strait tensions.

Saudi Aramco cut its official selling prices for Asian customers in November to the lowest level in six years. Bloomberg reported that the state-owned producer set the Arab Light crude price for Asia at a $5 discount against the Dubai/Oman benchmark, representing an unexpected $3 per barrel reduction, while raising prices for European buyers by $3 per barrel across all grades.

The pricing adjustments coincide with soaring logistics expenses, as freight costs for very large crude carriers reached a record $1.3 million per day due to tensions in the Strait of Hormuz. Speaking at the Energy Intelligence Forum in London on Monday, Aramco CEO Amin Nasser stated that pressure on the market will intensify until the strait fully re-opens and confidence returns.