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2026-11-06 10:28:26
[Saudi Aramco Cuts December Asian Arab Light Crude Price by $2 to Six-Year Low] (1) Saudi Aramco on Friday cut its official selling price for Arab Light crude to Asian customers by $2 per barrel in December compared to November, widening the discount to the Oman/Dubai average to $6.50 per barrel, the lowest level since the COVID-19 pandemic began in May 2020. (2) Pricing documents show that Saudi Aramco also cut the price of all grades of crude to Northwest Europe and the Mediterranean by $1 per barrel in December, while keeping the price unchanged in the U.S. market. (3) A survey last week showed that due to ample Middle Eastern crude oil supply and weak spot premiums, market participants had expected Saudi Aramco to keep Asian prices unchanged or cut them by up to $2 per barrel to attract buyers. (4) This week, the spot premium for benchmark Middle Eastern crude oil fell back to pre-war levels before the U.S.-Israel war against Iran; despite an increase in attacks on tankers sailing through the Strait of Hormuz, increased exports from oil-producing countries boosted supply, while cooling refining margins in Asia also dampened buying interest. (5) HSBC said that the recovery in exports was faster than expected, and raised its forecast for Saudi Arabia’s crude oil production in the fourth quarter from 6.3 million barrels per day to 8.3 million barrels per day; it also raised its forecast for Saudi Arabia’s production in 2027 from 8.8 million barrels per day to 9.8 million barrels per day, and expects Saudi Arabia’s crude oil production to recover to about 10 million barrels per day by mid-2027.
