By Yomna Ehab and Siyi Liu
Oct 5 (Reuters) – Saudi Arabia has unexpectedly lowered its crude oil prices for Asia for November, while increasing prices for northwest Europe and the Mediterranean, according to a pricing document released on Monday.
The largest crude oil exporter in the Middle East set the official selling price for November Arab Light crude oil for Asia at $5 below the average prices of Oman and Dubai, which is a reduction of $3 from the previous month. This discount is the largest since June 2020, according to data from Reuters.
This decision contrasts with predictions from a Reuters survey that anticipated a $3 increase for November's official selling price, based on rising Middle Eastern benchmarks. Saudi Aramco, the state oil company, also made larger cuts of $5 for the November prices of its heavier oil grades—Arab Medium and Arab Heavy—offered to Asia.
People familiar with the situation indicated that Aramco has been considering discounts for oil shipped from Oman to help buyers cope with record freight costs, as it aims to maintain its market share amid export challenges from regional conflicts.
In a different move, Saudi Aramco increased the November official selling prices for northwest Europe by $3 a barrel across all oil grades after restarting exports from the Red Sea port of Yanbu.
Prices for buyers in the United States remained unchanged.
Additionally, Saudi Arabia and other OPEC+ members agreed on Sunday to keep oil production targets steady for November, aligning with expectations that no further adjustments in production policy will occur until next year.