Asian refiners secure November Saudi crude in spot deals, sources say

what happened

Reuters reports that several Asian refiners purchased Saudi crude for November delivery in the spot market. Chinese state-owned and independent processors bought at least 12 million barrels on a delivered basis, according to three sources. Two other sources said refiners in India and Taiwan also secured oil loading in November under delivered arrangements.

Some cargoes changed hands at a premium of roughly $20 per barrel to November official selling prices, the sources said. The transactions followed a tender from Saudi Aramco issued last week and separate private negotiations. Aramco had not responded to Reuters’ request for comment at the time of publication.

Saudi Arabia normally announces OSPs at the start of each month and asks term customers to nominate their volumes. The kingdom has instead directed Strait of Hormuz barrels into spot sales after buyers declined to charter vessels for loading inside the waterway because of security threats amid the Iran war. Aramco is retaining volumes for loading at Yanbu on the Red Sea and Egypt’s Sidi Kerir. November’s OSP for flagship Arab Light was set at $5 per barrel below the Oman-Dubai average, its lowest level in six years. Kpler data cited by Reuters put Saudi oil exports at 6.67 million barrels per day in September, a seven-month high and a return to pre-war levels.

why it matters

The switch to spot transactions and the roughly $20-per-barrel premium underline how Strait of Hormuz security concerns are reshaping Saudi crude logistics and delivered costs. The lower Arab Light OSP was intended to support buying.

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