Oil prices dip as Saudi cuts Asian crude rates and Hormuz shipments rise
West Texas Intermediate fell to about $89 a barrel and Brent hovered near $100 after Saudi Aramco lowered its Arab Light price for Asian buyers and oil flows through the Strait of Hormuz increased.
West Texas Intermediate futures slipped 1.8% to settle near $89 a barrel while Brent finished around $100, following Saudi Aramco's decision to cut the Arab Light price for Asian customers by $5 a barrel, the deepest discount in six years. The price cut comes as oil shipments through the Strait of Hormuz have risen, helping physical supplies recover after the February Iran-US war. Traders have reduced open interest in front-month contracts to sidestep geopolitically driven swings, and a survey showed refiners had expected a $5 increase instead.
The Group of Seven announced another emergency release of stockpiles, and Opec+ members agreed to keep production quotas steady for November. Iranian interior minister travel to Doha and high-level U.S. talks on Hormuz underscore ongoing tensions, while the United Kingdom Maritime Trade Operations warned a tanker was ordered to turn back by Iran. Analysts highlighted that global oil reserves are “scarily thin,” leaving markets vulnerable if Hormuz disruptions intensify.
Why it matters
The price cut and rising Hormuz flows are lowering global oil prices, affecting energy costs worldwide amid ongoing Middle-East conflict.
How this story developed
- Sep 11 Smoke spotted near Saudi East-West oil pipeline as Houthi advances intensify
- Sep 24 Saudi Arabia, the UAE and other Gulf producers have rerouted oil through spare pipeline capacity and a U.S.-protected corridor, keeping global supply steady despite higher prices.
- Sep 25 President Pezeshkian linked the Strait of Hormuz dispute to U.S. sanctions and the naval blockade in his UN address.
- Sep 25 Iranian President Masoud Pezeshkian arrived in New York, the first Iranian head of state to set foot in the United States.
- Sep 26 Iran awaited an official U.S. reply to its UN‑transmitted peace initiative.
- Sep 26 In a speech to the UN General Assembly, Han Zheng highlighted China's view that global progress should be built on development and open cooperation. He warned that protectionist policies benefit no one and reiterated support for multilateral dialogue. The address also touched on the Middle East conflict, AI and the Belt and Road initiative, but did not mention Taiwan despite heightened US-China tensions. Analysts noted the speech was routine, with President Xi absent and senior officials rotating representation at the UN.
- Sep 26 Gulf leaders scheduled a meeting with Donald Trump to seek a diplomatic path with Iran.
- Sep 27 Iranian President Masoud Pezeshkian said Iran will remain resolute and not retreat despite President Donald Trump's rejection of Iran’s seven‑day ceasefire and Strait of Hormuz reopening proposal.
- Sep 28 Han Zheng’s address emphasized Belt and Road cooperation with three‑quarters of participating nations.
- Sep 29 The U.S. Treasury announced sanctions on ten individuals and firms accused of obtaining weapons components for Iran's defence ministry.
- Oct 2 The United States has now sanctioned Iran's automotive and railway sectors.
- Oct 3 A second tanker was hit east of Oman, adding to the earlier incident in the strait.
- Oct 5 The G7 announced a release of diesel and crude from emergency reserves.
- Oct 5 A U.S. naval blockade has caused a backlog of hundreds of trucks at the Gürbulak crossing, with waits up to five days.
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