Saudi Arabia’s state-run oil company Aramco announced on Sunday the cut of gasoline prices starting May 11, 2020, corresponding to 18 Ramadan 1441, which showed a drop of about 50% during the holy month.
According to the Saudi Press Agency, Aramco stated that the price adjustment is carried out in accordance with the procedures for the governance of adjusting the prices of energy and water products.
It also clarified that the local prices of gasoline are subject to change, according to changes in export prices from the Kingdom to the global markets.
Aramco's new gasoline prices are as follows:
Gasoline 91: 0.67 riyals per liter, down 49% from the previous month.
Gasoline 95: 0.82 riyals per liter, down 44% from the previous month.
Meantime, Aramco has cut oil production after the OPEC+ agreement came into effect on May 1.
According to Bloomberg, the Saudi company cut production from about 12 million barrels per day to the agreed level of 8.5 million bpd.
The OPEC and its allies, 23 countries, agreed this month to reduce global production by 10% in an effort to achieve a balance in a turbulent market due to the coronavirus (COVID-19) crisis.
Saudi energy minister Prince Abdulaziz bin Salman has said earlier that the Kingdom could cut oil output below its current quota of 8.5 million bpd if needed.
It is worth mentioning that the U.S. benchmark West Texas Intermediate (WTI) index for the May delivery fell to a record low of minus $40 a barrel last month, the first time it had fallen into negative territory, to rebound again by about 20% in later sessions as traders go optimistic about the moves made by several major economies to ease coronavirus closures, allowing more demand.
The crude oil is on track to finish the best week in its history with the WTI oil futures for June delivery have rallied 31% since Monday to $24.04 per barrel, the biggest one-week gain since its 1983.
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