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Saudi Aramco Considers Discounts for Crude Loaded off Oman, Up to $9/bbl
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According to five sources cited by tradealpha on September 28, Saudi Aramco is considering reducing the official selling price (OSP) for crude oil loaded in Oman waters. The potential discount aims to compensate Asian buyers for sharply higher freight costs and help Saudi Aramco regain market share lost due to disrupted oil transport through the Strait of Hormuz. The company is in talks with some Asian refiners about a possible OSP discount to boost the attractiveness of its crude amid the freight surge. The discount may apply to cargoes offered this week for loading in the second half of October, sold via ship-to-ship transfers near Oman waters. One source indicated the discount under discussion is approximately $9 per barrel. In recent weeks, as Saudi Arabia increased exports from its Gulf fields, the price for crude loaded outside the Strait of Hormuz (in Oman waters) has carried a premium of $10 to $20 per barrel over the monthly OSP.
Source report
September 28 — Saudi Aramco is considering reducing the official selling price (OSP) for crude oil loaded off the coast of Oman, according to five sources familiar with the matter. The move is intended to compensate buyers for rising shipping costs and help the company regain market share lost due to disruptions in oil transport through the Strait of Hormuz.
Key details from the sources:
- Saudi Aramco is in discussions with several Asian refiners about potential discounts to the OSP, aiming to boost the attractiveness of its crude amid surging freight rates.
- The discounts may apply to cargoes offered this week, scheduled for loading in the second half of October, and sold via ship-to-ship transfers near Omani waters.
- One source indicated that the discount under discussion is approximately $9 per barrel.
In recent weeks, as Saudi Arabia increased crude exports from its Gulf fields, Aramco has been selling crude loaded outside the Strait of Hormuz (off the Oman coast) to Asian buyers at a premium of $10 to $20 per barrel above the monthly OSP.
Source
domesticRegional
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