Saudi Aramco resumes crude oil deliveries to Europe with discounts

Saudi Aramco has reversed its previous decision to cancel October crude oil deliveries to European refineries, which were initially halted due to a strike on the East-West pipeline. The company is now offering additional crude oil for October and November, including discounted spot prices for late October deliveries to incentivize buyers.

Deliveries can be made via the Egyptian port of Sidi Kerir or Yanbu on the Red Sea. Aramco has also confirmed that all contractual allocations for November will be fully honored. The return of Saudi oil, which typically accounts for 700,000 to 800,000 barrels per day in Europe, has already begun to lower the costs of various European crude varieties after refineries were forced to seek alternative sources.

This supply increase aligns with a broader production surge in Saudi Arabia. Following a thirty-year low in August, the kingdom increased production by approximately one-third in September, exceeding 8 million barrels per day. Similar production trends are being observed across the Gulf region.