Saudi Arabia slashed its main crude oil price for Asian customers, as a resumption of flows through the Strait of Hormuz and OPEC+’s decision to boost output intensifies the competition for buyers.
Despite the discount, Asian buyers said Saudi supplies were still more expensive than those from other regional producers, Bloomberg noted, potentially signaling steeper cuts amid fears of a global glut, given that China hasn’t resumed large-scale oil imports so far.
One analyst, however, argued the cutback was more a sign of “Hormuz’s messy normalization” than a price war, noting that competitive pricing could “reinvigorate Chinese interest.” Fears of a glut may be overblown, a global energy consultant said, suggesting that full supply won’t return before 2027.