The Saudi Aramco OSP for Asia has fallen to a six-year low. Saudi Aramco cut its December 2026 official selling price (OSP) for Arab Light crude to Asian buyers by $2 a barrel from November 2026, Reuters reported, citing a pricing document. The cut took the price to the lowest level since May 2020, during the pandemic.
According to Reuters, Arab Light for Asia now sells at a discount of $6.50 a barrel to the Oman/Dubai average. However, Argaam and Quantum Commodity Intelligence put the December 2026 Arab Light differential at minus $7 a barrel.
Saudi Aramco OSP cuts across Europe
The cuts went beyond Asia. Aramco also lowered December 2026 prices for all grades to Northwest Europe and the Mediterranean by $1 a barrel. By contrast, it left prices for US buyers unchanged.
According to Argaam, Arab Light for Northwest Europe now stands at a discount of $0.15 a barrel to Brent. Similarly, the Mediterranean price is a discount of $0.35 a barrel. Meanwhile, Arab Light for North America stays at a premium of $4.60 a barrel over the Argus Sour Crude Index.
Why Aramco cut prices
The move matched the top end of expectations. A Reuters survey had found that market participants expected Aramco to keep Asian prices unchanged or to cut them by up to $2. They cited ample Middle East supplies and weaker spot premiums.
Indeed, spot premiums for Middle East crude benchmarks returned to levels seen before the US-Israeli war on Iran this week, Reuters said. Producers ramped up exports despite rising attacks on tankers crossing the Strait of Hormuz. At the same time, cooling refining margins in Asia slowed buying interest.
Supply is clearly recovering. OPEC output rose by 1.38 mmbbl/d in October 2026 to 22.87 mmbbl/d, a Reuters survey found. Furthermore, HSBC raised its fourth-quarter 2026 forecast for Saudi crude production to 8.3 mmbbl/d from 6.3 mmbbl/d. The bank cited a faster-than-expected export recovery. It also lifted its 2027 forecast to 9.8 mmbbl/d from 8.8 mmbbl/d. In addition, HSBC expects Saudi output to return to about 10 mmbbl/d by mid-2027.
What the Saudi Aramco OSP means for traders
The OSP sets the price of Saudi term barrels. As a result, a deeper Asian discount lowers crude costs for refiners in Asia that buy Saudi oil under term contracts.
The cut also reflects the shift in the physical market. Gulf grades traded at a large premium to paper Brent during the war, as we explained in our analysis of the Murban premium and the Brent physical-paper gap. Now that premium is narrowing as more barrels reach the market.
Futures have weakened too. Brent fell 5.85% to settle at $92.57 a barrel on 9 November 2026 after US President Donald Trump played down renewed strikes on Iran.
Next, traders will watch how Asian refiners nominate December 2026 volumes. They will also look for the next move in the January 2027 OSPs.
For a deeper analysis, read: Saudi Aramco OSP: Why Asia’s December 2026 Cut Hit a Six-Year Low
Sources
- Reuters (via Zawya): Saudi Arabia cuts December Asia oil prices to fresh 6-year low
- Argaam: Aramco keeps North American Arab Light price unchanged for December
- insigtX: Saudi Aramco Cuts December Arab Light Crude OSP for Asia by $2 to Six-Year Low
- Quantum Commodity Intelligence: Saudi cuts December Asia OSPs to new 6-yr lows, Arab Light at -$7/b
- Reuters (via Yahoo Finance): Oil down more than $7 a barrel in post settlement trade as Trump signals restraint on Iran
- Entelera: Murban premium: the Brent physical-paper gap
