Saudi Aramco plans to lower the price of Oman STS crude oil to ease buyers’ shipping cost pressure.

1. Five informed sources said that Saudi Aramco is considering offering discounts on the official selling price of crude oil loaded in Oman to offset losses suffered by buyers due to record-high freight costs. 2. This move may help Saudi Aramco regain some of the market share lost due to disruptions in shipping through the Strait of Hormuz. 3. Since the de facto blockade of the Strait of Hormuz resulting from the Iran conflict, Saudi crude oil supply has slowed; Abu Dhabi National Oil Company significantly increased its sales by transporting crude oil from oil fields west of the Strait to export terminals outside the Strait. 4. According to informed sources, against the backdrop of soaring freight rates, Saudi Aramco is negotiating with some Asian refiners for potential official price discounts to enhance the competitiveness of its crude oil. The sources requested anonymity as the negotiations are private. 5. The discount may apply to cargoes offered this week, which are scheduled to be loaded in the second half of October and sold via ship-to-ship transfers off the coast of Oman. One source said the discount under discussion is about $9 per barrel.