Saudi Arabia’s Saudi Aramco has increased the official selling prices (OSP) for November-loading Arab Light to Asia by 40 cents a barrel from October to $4 a barrel over Oman/Dubai quotes. The Kingdom on October 4 announced that it will continue with its voluntary output cut of 1 million barrels of oil per day (bpd) for November and until the end of December 2023.
The price hike is in accordance with the market expectations of an increase of about 45 cents, and has pushed the price for the medium sour crude to its highest level this year.
Saudi Aramco also raised the price for Extra Light crude to Asia by 50 cents in November to $3.35 a barrel over Oman/Dubai quotes, reflecting the strengthening of prices for light sour grades in the spot market. The OSPs for Arab Medium and Arab Heavy have been kept unchanged.
The voluntary cut of 1 million bpd in November and December means Saudi Arabia’s production for the final two months of the year will be approximately 9 million bpd. This reduction is in addition to the voluntary cuts the country had announced in April, when the country agreed to reduce output by 5,00,000 bpd until the end of December 2024.