Oil Prices Recover in December 2024, Saudi Aramco Cuts Prices for 2025 Beginning

The recent oil and petrochemicals monthly report by Aljazira Capital unveiled that methanol, propylene, and Urea prices rose in December 2024, while EDC, PVC, HDPE and PC declined.

The listed Saudi Arabian Oil Company (Aramco) lowered propane and butane prices for January 2025: Naphtha prices decreased 0.8% month-on-month (MoM) to US$645 per tonne in December 2024. Propane and butane prices remained flat at US$635 per tonne and US$630 per tonne, respectively.

Aramco slashed the prices of propane and butane for January to US$625 per tonne and US$615 per tonne, respectively.

Aljazira Capital stated that oil prices recovered in December last year amid Chinese stimulus, sanction expectations, and US inventory drawdowns. Momentum continued in January 2025 as the US imposed fresh sanctions on Russian supply.

The prices were under pressure during the start of the month due to oversupply concerns and weaker demand outlook for fiscal year 2025.

The research company added: “Later, the prices recovered on account of expectations of higher demand from China owing to fresh stimulus packages, anticipation of sanctions on Russia and Iran, also aided by drawdown in US inventories amid higher demand. In early January, oil continued to rally, as the US imposed fresh sanctions targeting Russian oil supply.”

Brent increased by 1.7% MoM, while WTI rose 3.8% MoM in December, ending at US$74.2/bbl and US$70.6/bbl, respectively. Natural gas prices at Henry Hub grew 4.5% MoM to US$3.5/mn Btu.