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Saudi Arabia cuts oil prices sharply for Asian buyers
Published : Monday, 5 October, 2026 at 4:42 PM
Observer Online Report
Saudi Arabia has cut the November selling price of its crude oil for Asian buyers to the lowest level in six years, with state-owned Saudi Aramco setting the price of Arab Light at $5 a barrel below the average of Oman and Dubai benchmarks.
The discount is $3 higher than the $2-a-barrel reduction offered for October, according to Saudi Aramco’s pricing document released on Monday (October 5). Reuters reported that it is the biggest discount on Saudi crude for Asian buyers since June 2020.
Aramco also cut the prices of Arab Medium and Arab Heavy crude by $5 a barrel for Asian customers. The move came despite expectations that Saudi crude prices would rise, with analysts polled by Reuters forecasting an increase of up to $5 a barrel.
The price cuts are believed to be aimed at easing the burden on Asian refiners amid soaring shipping costs linked to recent conflicts in the Middle East. Freight rates for large crude carriers capable of transporting around 2 million barrels of oil from the Gulf to China rose to about $1.2 million a day on Friday, compared with around $80,000 a year earlier.
While prices were reduced for Asian buyers, Aramco raised the official selling prices of all crude grades for buyers in northwest Europe by $3 a barrel for November. Prices for US buyers were kept unchanged.
The discount is $3 higher than the $2-a-barrel reduction offered for October, according to Saudi Aramco’s pricing document released on Monday (October 5). Reuters reported that it is the biggest discount on Saudi crude for Asian buyers since June 2020.
Aramco also cut the prices of Arab Medium and Arab Heavy crude by $5 a barrel for Asian customers. The move came despite expectations that Saudi crude prices would rise, with analysts polled by Reuters forecasting an increase of up to $5 a barrel.
The price cuts are believed to be aimed at easing the burden on Asian refiners amid soaring shipping costs linked to recent conflicts in the Middle East. Freight rates for large crude carriers capable of transporting around 2 million barrels of oil from the Gulf to China rose to about $1.2 million a day on Friday, compared with around $80,000 a year earlier.
While prices were reduced for Asian buyers, Aramco raised the official selling prices of all crude grades for buyers in northwest Europe by $3 a barrel for November. Prices for US buyers were kept unchanged.
- MaT
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Editor : Iqbal Sobhan Chowdhury
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Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
