Saudi Arabia, the world's top oil exporter, sharply cut the price of its flagship crude grade for Asian buyers as flows through the Strait of Hormuz accelerate.
State producer Saudi Aramco on Sunday lowered the official selling price for November shipments of its Arab Light crude to Asia--the largest market for Middle Eastern oil--by $3 a barrel to a discount of $5 a barrel to the Oman/Dubai benchmark.
Official selling prices are monthly rates set by national oil companies for term-contract customers and are typically pegged to regional crude benchmarks. The prices reflect demand from refiners and competition among exporters, making them a closely watched gauge of market conditions in key consuming regions.
The move comes as analysts say crude exports from the Middle East are back at prewar levels, with the region's major producers ramping up supplies through ship-to-ship transfers, alternative ports and pipelines.
Saudi crude transits through the Strait climbed from around 1.4 million barrels a day in late August to around 4.1 million last week, according to data provider Kpler. The kingdom also resumed exporting oil via its East-West pipeline to the Red Sea after drone attacks forced it to shut it in mid-September.
Aramco slashed November prices for its heavier crude grades sold to Asia by $5 a barrel. Prices for grades sold to Northwest Europe and the Mediterranean were, instead, raised by $3 a barrel.
Earlier on Sunday, Saudi Arabia and other OPEC+ allies agreed to keep oil production steady in November as security risks in the region remain elevated.