Saudi Aramco cuts Arab Light price for Asia as Hormuz talks advance
Saudi Aramco reduced its Arab Light crude price for Asia by 50 US cents to US$2 under the regional benchmark for September deliveries, traders told Bloomberg.
Source: The Edge Malaysia · August 6, 2026 at 10:11 AM · AI-assisted report
Corroborated
KUALA LUMPUR, 6 AUGUST 2026 —
Saudi Aramco reduced its Arab Light crude price for Asia by 50 US cents to US$2 under the regional benchmark for September deliveries, traders told Bloomberg.
Market Impact
The price cut follows signs of progress in talks to reopen the Strait of Hormuz shipping lane, which Iran said was in its final stages on Monday. Brent crude slid toward US$80 a barrel this week as traders priced in the potential easing of Hormuz restrictions.
Aramco also lowered prices for all crude grades to the US, Northwest Europe and the Mediterranean, while increasing Medium and Heavy crude prices for Asia. The moves reflect tighter supplies of heavier grades that typically ship from the Persian Gulf, where Hormuz remains effectively closed.
Chief executive Amin Nasser said Aramco has sustained exports at about five million barrels a day, roughly 70% of normal volumes, by rerouting crude through the East-West pipeline to the Red Sea port of Yanbu. From Yanbu, tankers sail south via the Bab El-Mandeb strait off Yemen, a route now under threat from Houthi militants who vowed this week to attack Saudi vessels.
If the Bab El-Mandeb route closes, tankers would have to sail north from Yanbu, pass through the Suez Canal and travel around Africa to reach Asia, adding 20 to 25 days to voyages. Asian refiners in China, India and South Korea have relied on Yanbu cargoes since Hormuz was blocked, but a reopened Hormuz would allow Aramco to restart shipments from its main terminal at Ras Tanura.
Easing Hormuz restrictions would help Aramco restore production and meet domestic fuel demand from its refineries. Opec+ agreed over the weekend to further increase production quotas, a symbolic step given current Gulf constraints, but one that could eventually lift Saudi output to about 10.5 million barrels daily.
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