Oil prices in South Asian markets have dropped again following Saudi Arabia's decision to reduce oil prices for the U.S. and Asian markets.

On Friday December5, the Saudi oil company ARAMCO announced that it plans to reduce the price of its crude oil destined for Asian countries by $1.50 to $1.90 per barrel in 2015.

The report in AFP says ARAMCO will also cut the price of oil sold to the U>S> by 70 cents a barrel.

The announcement caused the price of barrel of oil to dip below $70. On Wednesday the price had been just above that mark.

Oil prices have now fallen to their lowest level in the past four yours, according to the Wall Street Journal.

Saudi Arabia has said it could live even with a price as low as $60 a barrel. The fall in the price of oil came after Saudi Arabia decided to reduce its oil prices in order to compete with increased oil production in the U.S.

Plunging oil prices have significantly reduced government revenues in oil-producing countries, including Iran.