Oil prices fell by more than 3 percent on Thursday, September 26, following reports that Saudi Arabia, the world's largest oil exporter, is set to abandon its target of raising the price to $100 per barrel and instead increase oil production starting in December, according to Reuters.
The price of Brent crude oil, a major global benchmark, decreased by $1.86 per barrel or 2.53 percent to $71.60 per barrel on Thursday.
Similarly, the US West Texas Intermediate (WTI) crude fell by $2.02 per barrel or 2.9 percent, bringing down its price to $67.67 per barrel.
Oil prices have dropped nearly 6 percent this year, primarily due to increased production in the US and lower demand growth in China, according to Reuters.
Additionally, the possibility of more supply from Libya and Saudi Arabia is expected to bring down the prices.
Reuters reports that with Saudi Arabia planning to increase oil production, prices are likely to decline further this year unless some major global events occur.
In Nepal, the Nepal Oil Corporation (NOC), which imports petroleum products from India, sets its oil prices according to the price list provided by the Indian Oil Corporation (IOC). India, which also imports petroleum, adjusts its prices based on the international market.