You got the direction right it's a shock cut, but wording matters. It's not $5 _below benchmark_ from scratch, it's a discount that _widened_ to $5 below. $RLC $RAD $RLC
*Aramco OSP doc Oct 5 for Nov loading:*
*Asia: Arab Light set at -$5.00 vs Oman/Dubai avg — down $3.00 from Oct (-$2.00) — widest discount since June 2020 (6-year low) — traders surveyed by Reuters expected +$3 to +$5 HIKE in line with Dubai gains, so $6-8 swing vs expectation*
- *Heavier cuts bigger: Arab Medium -$6.00 (was -$1.00) = -$5.00 — Arab Heavy -$7.35 (was -$2.35) = -$5.00 — Super Light -$3.35 (-$3) — Extra Light -$4.50 (-$3)*
- *Why: not demand collapse — freight compensation — VLCC Gulf→China $1.2M/day Oct 2 vs $80k/day year ago LSEG — US-Israeli war vs Iran disrupted Hormuz — Aramco did STS transfers outside Hormuz since Sep, shipped via Sidi Kerir Egypt + resumed Yanbu Red Sea after drone hit East-West pipeline Sep — CEO Nasser Mon: 3B barrels lost through Hormuz since Feb, inventories need 2 years to rebuild*
- *Other regions: NW Europe + Mediterranean RAISED +$3.00 all grades (Yanbu restart) — US unchanged: Arab Light +$4.60 vs ASCI*
- *Market: Brent $102-103, WTI $89-91 Mon — G7 stock release talk + recovering Middle East flows — OPEC+ Oct 5 kept Nov output steady after +137k bpd hikes — JPMorgan: Mideast exports 98% pre-war*
Not tightening margins for Aramco — it's defending Asia share (80% of Saudi exports) by offsetting freight.
*BREAKING 🚨 Aramco slashes Asia OSP to 6yr low 🔥 Nov Arab Light -$5.00 vs Oman/Dubai, -$3.00 MoM widest since Jun 2020 — vs +$3-5 hike expected = shock — Medium/Heavy -$5.00 each — reason: $1.2M/day VLCC freight (vs $80k yr ago) from Iran war Hormuz disruption — Europe +$3.00, US flat — Brent $102.20 — OPEC+ holds Nov output 📉*
*Aramco OSP doc Oct 5 for Nov loading:*
*Asia: Arab Light set at -$5.00 vs Oman/Dubai avg — down $3.00 from Oct (-$2.00) — widest discount since June 2020 (6-year low) — traders surveyed by Reuters expected +$3 to +$5 HIKE in line with Dubai gains, so $6-8 swing vs expectation*
- *Heavier cuts bigger: Arab Medium -$6.00 (was -$1.00) = -$5.00 — Arab Heavy -$7.35 (was -$2.35) = -$5.00 — Super Light -$3.35 (-$3) — Extra Light -$4.50 (-$3)*
- *Why: not demand collapse — freight compensation — VLCC Gulf→China $1.2M/day Oct 2 vs $80k/day year ago LSEG — US-Israeli war vs Iran disrupted Hormuz — Aramco did STS transfers outside Hormuz since Sep, shipped via Sidi Kerir Egypt + resumed Yanbu Red Sea after drone hit East-West pipeline Sep — CEO Nasser Mon: 3B barrels lost through Hormuz since Feb, inventories need 2 years to rebuild*
- *Other regions: NW Europe + Mediterranean RAISED +$3.00 all grades (Yanbu restart) — US unchanged: Arab Light +$4.60 vs ASCI*
- *Market: Brent $102-103, WTI $89-91 Mon — G7 stock release talk + recovering Middle East flows — OPEC+ Oct 5 kept Nov output steady after +137k bpd hikes — JPMorgan: Mideast exports 98% pre-war*
Not tightening margins for Aramco — it's defending Asia share (80% of Saudi exports) by offsetting freight.
*BREAKING 🚨 Aramco slashes Asia OSP to 6yr low 🔥 Nov Arab Light -$5.00 vs Oman/Dubai, -$3.00 MoM widest since Jun 2020 — vs +$3-5 hike expected = shock — Medium/Heavy -$5.00 each — reason: $1.2M/day VLCC freight (vs $80k yr ago) from Iran war Hormuz disruption — Europe +$3.00, US flat — Brent $102.20 — OPEC+ holds Nov output 📉*
