The market price for Saudi Aramco shares continued to fall on Monday after losing 0.40 dollars or 1.24 per cent of their price on Sunday amid the news that a new OPEC+ deal stipulating major cuts in global crude production had been signed.
The price per Saudi Aramco share initially jumped from 31.65 to 31.80, but later started gradually falling losing 0.55 dollars or 1.74 per cent in comparison to the previous day’s close as of 11:35 GMT.
Saudi Aramco’s current share price is slightly lower than their initial 32 dollars per share price during the company’s IPO in December 2019.
Back then the firm, previously solely owned by the Saudi government, allowed the sale of 1.5 per cent of its value in the form of shares listed on the Saudi Tadawul stock exchange, thus raising some 25.6 billion dollars.
The company’s shares started falling on the same day members of OPEC+ and other oil-producing countries agreed to a new reduction of crude output to deal with slumping oil prices.
The latter have nosedived almost 30 dollars in the last two months amid the coronavirus pandemic and the collapse of the previous OPEC+ deal.
The new deal stipulates a gradual global reduction in oil output over two years with the initial slash in production being 9.7 million barrels per day.
However, Saudi Arabia, Kuwait, and the United Arab Emirates have volunteered to reduce their output by even greater numbers than the deal suggests, jointly removing 12.5 million barrels per day from the market.
The set of measures was directed to raise crude prices, which remain under the pressure of falling consumption and demand caused by the COVID-19 pandemic.
When the opening bell sounded on Monday, black gold’s price tag soared from 31.78 dollars to 33.17 dollars.
However, this moderate gain was later lost over the next few hours with the price for Brent plunging to 31.36 dollars or by 1.38 per cent.