Why did Saudi Aramco further cut its light crude oil price for Asian buyers in September?

Saudi Aramco cut its September Arab Light official selling price (OSP) for Asia by widening the discount to the regional benchmark by $2 per barrel, primarily to compensate Asian refiners for significantly higher freight costs and longer transit times caused by the need to reroute shipments around Africa—due to persistent security threats in both the Strait of Hormuz (from regional tensions and attacks on vessels) and the Bab el-Mandeb Strait (from Houthi attacks), which have severely constrained Saudi exports via its traditional Gulf and Red Sea routes.

What is the current status of Saudi Aramco’s crude oil exports, and how are logistical constraints affecting them?

Saudi Aramco’s crude exports remain at about 5 million barrels per day—roughly 70% of normal levels—due to severe constraints on both major export corridors: the Persian Gulf terminal Ras Tanura operates far below capacity because of repeated disruptions from conflict and vessel attacks in the Strait of Hormuz, while the Red Sea port of Yanbu, though critical for maintaining flow, is rendered unattractive by Houthi threats in the Bab el-Mandeb Strait; as a result, Aramco is exploring alternative routes such as the Sumed Pipeline to Egypt’s Sidi Kerir port, but these options face substantial operational and infrastructural challenges.

Saudi Aramco Further Cuts Asian Light Crude Oil Price

Aug 11, 2026

Saudi Aramco widened the discount on September Arab Light crude to Asia by $2 per barrel amid geopolitical tensions disrupting shipping routes. Brent crude prices dropped nearly 20% in two weeks as traders anticipate increased supply despite export constraints.

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