Key facts
- Saudi Aramco is offering discounted crude oil to European refiners for October and November.
- The company had previously canceled October contracts due to an attack on the East-West pipeline.
- The pipeline is now operational again.
- Saudi Arabia increased its oil output by roughly one-third in September to over 8 million bpd.
- Additional Saudi supply has contributed to falling prices for some European crude grades.
Saudi Aramco is offering discounted crude oil to European refiners for October and November loading, a significant shift after previously canceling October contracts due to an attack on its East-West pipeline. The pipeline is now operational, and the company is providing additional spot cargoes, with some October barrels priced below the official selling price. This recovery in supply, coupled with increased output from other Gulf producers like the UAE and Iraq, has already begun to lower prices for certain European crude grades. Saudi Arabia's production has rebounded substantially, increasing by about a third in September to over 8 million barrels per day.