Saudi Aramco, the Saudi state oil company, announced an official selling price, or OSP, cut for its Arab Light crude for November delivery to Asian customers of $3 per barrel, bringing it to $5 per barrel below the average of Oman and Dubai crude prices. That is the largest cut since June 2020 and runs counter to analysts' expectations of a $3 per barrel increase. The company also cut prices for Arab Medium and Arab Heavy crude for Asia by as much as $5 per barrel, while raising prices for all grades for customers in northwest Europe by another $3 per barrel after resuming exports from the Red Sea port of Yanbu. Prices for US customers were left unchanged. On production policy, the OPEC+ group, made up of seven members, namely Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, decided to keep oil production for November 2026 at existing levels after concluding a video conference meeting on Sunday, October 4. The next meeting will be held on November 1 to review market conditions and decide the next step in production policy.
Aramco's surprise $3/barrel price cut for Asian Arab Light crude and OPEC+ holding production at existing levels point to a soft, well-supplied market, weighing on Brent.
Saudi Aramco's larger-than-expected $3/barrel OSP cut for Asian crude signals weaker demand and ample supply, pressuring WTI prices.
