Aramco Cuts Asia Oil Prices to Six-Year Low, Raises Prices for Europe
Saudi Aramco has raised oil prices for European-bound cargoes in November but has cut prices for Asian buyers to the lowest in six years, Reuters reported today, noting analysts had expected price hikes. According to the pricing information, Aramco will be offering Arab Light at a discount of $5 per
Source: OilPrice.com
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DW NOTE
Aramco is cutting prices to Asia — the market that sits on the wrong side of a closed Strait of Hormuz — while raising them to Europe, which can still receive cargoes via the Cape route. The six-year low isn't demand weakness; it's a discount for the logistical penalty of buying oil that now costs more to deliver than the oil itself.