From mint · · 1m 20s
Saudis Slash Oil Prices to Asia
Saudi Aramco cuts Asian oil prices to six-year low in market share battle.
In brief
Saudi Aramco cuts Asian oil prices to six-year low in market share battle. Saudi Aramco reduced Asian oil prices to a six-year low to gain market share amid increased Gulf flows through Hormuz. Originally reported by mint.
Saudi Aramco price cut
Saudi Aramco has cut prices for its benchmark oil grade to Asia to a six-year low as Persian Gulf producers race for market share with flows through the Strait of Hormuz increasing.
Price discount reduction
The state-owned firm will lower Arab Light crude to buyers in Asia to $5 a barrel less than the regional benchmark for November, according to a list from the producer. That compared with a discount of $2 a barrel for this month.
Expected price increase
Traders and refiners had expected a $5 increase from October, a Bloomberg survey shows.
Price adjustments for regions
Aramco raised November prices to Europe by $3 a barrel, and left those to the US unchanged from this month.
Hormuz oil flows rebound
While there are still frequent attacks on ships in and around Hormuz, the amount of oil moving through the waterway has rebounded over the last few months.
Pipeline restoration
Saudi Arabia has restored oil flows through the East-West pipeline to more than 80% of capacity, Bloomberg reported late last week.
What it means
Saudi Aramco reduced Asian oil prices to a six-year low to gain market share amid increased Gulf flows through Hormuz.
