Saudi Arabia surprises oil markets: prices fall for Asia, rise for Europe

A surprise move shakes the market

Global oil prices fell on Monday after Saudi oil giant Saudi Aramco announced a price cut for buyers in Asia, citing an increased flow of crude from the Persian Gulf. In October, Aramco will lower the price of Arab Light crude for Asian customers by $5 per barrel below the regional benchmark — as reported by Onet, this will be the lowest Arab Light price level since 2020. The decision caught traders and refiners off guard, as a $5 price increase had been widely expected instead.

According to Onet, Saudi Arabia simultaneously raised the price of crude for European buyers by $3 per barrel, while prices for US customers remained unchanged.

On Monday, West Texas Intermediate for November delivery traded on NYMEX in New York at $90.28 a barrel, down 0.91%, while Brent on ICE stood at $101.86, down 0.38%. On Friday WTI had cost $92.18 and Brent $101.75 a barrel, while the day before prices had risen on reports that Chinese refineries were halting fuel exports.

Houthi attacks on Aramco facilities

Yemen's government announced on Sunday that it had launched an offensive against the Houthis, Reuters reported. In turn, the Iran-backed Houthi rebels said they had struck Saudi Aramco facilities — according to Onet, with ballistic missiles and drones targeting sites in Riyadh and in the oil-rich Khurais region in the east of the country. Houthi military spokesman Yahya Saree said the attack was retaliation for Saudi strikes on areas of Yemen controlled by the movement.

June Goh, a senior fuel markets analyst at Sparta Commodities, warned that oil pipelines, refineries and loading infrastructure remain exposed to Houthi attacks, which could make it harder for Saudi Arabia to keep output high enough to supply markets via the Red Sea route.

OPEC+ holds steady, reserves released

Over the weekend, major OPEC+ members, led by Saudi Arabia and Russia, agreed to keep next month's oil supply quotas unchanged, as conflict in the Middle East continues to constrain output among several member states. According to Onet, seven OPEC+ countries will meet again online on November 1, while a full ministerial meeting on next year's supply policy is set for November 29.

The International Energy Agency (IEA) said on Saturday that roughly 325 million barrels of reserves have been released since March 2026 — about 80% of the 400 million barrels pledged by G7 countries. On Friday, French President Emmanuel Macron convened a remote meeting of G7 leaders, who decided to release 100 million barrels of diesel and other fuel reserves, on condition that the US does not impose a ban on diesel exports, which it had threatened in recent days. US President Donald Trump said on Friday that such a ban had never been under discussion.