Global oil prices drop to $71 as 4th largest production company cuts prices for Asia

Crude oil prices have dropped nearly 9% from an October high of $80.35 per barrel, with Brent crude struggling to stay above $75 as OPEC downgraded its global oil demand forecast for the fourth time.
Global oil prices tracked by Brent futures have fallen to $71 per barrel, remaining below the $75 threshold after Saudi Arabia’s oil giant, Aramco, cut prices for its Asian customers.
Aramco’s reductions for Asian buyers are deeper than expected, following OPEC’s delay in controlling production, which is adding pressure to efforts to stabilize prices.
For January, Aramco set the price of its key Arab Light crude grade at a premium of 90 cents per barrel above the regional benchmark.
The company has also reduced prices for markets in northwestern Europe and the Mediterranean but has kept prices for North America unchanged.
Despite these adjustments, Aramco remains a dominant force in the global oil market, ranking as the fourth-largest company in the world by revenue, with an impressive $494 billion in 2024.
In 2024, crude oil prices have struggled to sustain a long-term upward trend, reflecting a prolonged market dip that has carried over from the previous year.
A price reduction by state-owned producer Saudi Aramco in Asia is likely contributing to the fall of oil prices to $71.89 per barrel.

source: nairametrics.com

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