Saudi Arabia is said to be reviewing an IPO (Initial Public offering) with a decision expected to take place in the coming months.
The ramping up of tension between Saudi Arabia and Iran makes it highly unlikely Saudi Arabia will cut its output to help Iran regain market share, according to Wood Mackenzie.
Iraq has offered to act as a mediator to ease tensions between Saudi Arabia and Iran that escalated after the kingdom’s execution of a Shiite cleric and attacks on two of Saudi diplomatic posts in the Islamic Republic. Some Sunni Arab nations have followed the Saudis’ lead and severed or downgraded ties with Iran, while others have offered words of caution aimed at calming the situation. The offer by Iraqi foreign minister Ibrahim al-Jaafari, made during a news conference in the Iranian capital, included the diplomat referring to the execution of Sheikh Nimr al-Nimr as a “crime”, a description that raised questions as to whether Saudi officials would even consider such an offer. The kingdom and its allies say that Mr al-Nimr was executed after being tried and sentenced to death under Saudi law.
Armed men set a Saudi Aramco bus, carrying employees, on fire in Saudi Arabia amid heightened tensions.
At almost any other time, an escalating diplomatic conflict between OPEC members Iran and Saudi Arabia would mean a spike in oil prices.
Developing political tensions between Iran and Saudi Arabia have resulted in fluctuating oil prices, with the price of Brent crude having risen to $38.50/bbl, its highest level for three weeks.
There are several reasons why escalating tensions between Iran and Saudi Arabia make markets nervous. One of them is that they sit on either side of the Persian Gulf, the world’s biggest concentration of oil tankers.
Oil gained for a second day as Saudi Arabia cut ties with Iran a day after its embassy in Tehran was attacked to protest the Saudis’ execution of a prominent Shiite cleric.
Saudi Arabia, seeking to cope with the lowest oil prices in more than a decade, may announce cuts in capital spending and other economic measures for next year as it unveils the first annual budget under King Salman. Key officials, including Finance Minister Ibrahim Al-Assaf and Economy and Planning Minister Adel Fakeih, are scheduled to discuss the budget and outline the kingdom’s economic policy at a news conference on Monday in Riyadh. An official from Saudi Arabian Oil Co. will also attend. While the government may reduce capital expenditure, it’s unlikely to reduce spending on healthcare, education or major infrastructure projects, according to Fahad Al-Turki, the Riyadh-based chief economist at Jadwa Investment.
In 2015, the fracking outfits that dot America’s oil-rich plains threw everything they had at $50-a- barrel crude. To cope with the 50 percent price plunge, they laid off thousands of roughnecks, focused their rigs on the biggest gushers only and used cutting-edge technology to squeeze all the oil they could out of every well. Those efforts, to the surprise of many observers, largely succeeded. As of this month, U.S. oil output remained within 4 percent of a 43-year high.
As global oil prices tumble, Saudi officials are considering plans to sell shares in state-owned entities and companies, according to two people with knowledge of the discussions, in an attempt to find alternative sources of revenue. The government may sell stakes in ports, railways, utilities and airports, the two people said. Hospitals may also be privatized, one person said. Saudi officials weren’t immediately available for comment. With oil prices down to an 11-year low, Saudi officials are accelerating efforts to reduce the economy’s reliance on revenue from crude exports. They may have missed their best chance when prices were higher, according to economists and an International Monetary Fund study that highlighted how successful attempts depended on policies put in place before the slump.
OPEC raised crude output to the highest in more than three years as it pressed on with a strategy to protect market share and pressure competing producers.
Iran joined Saudi Arabia in saying it would keep on pumping despite oil prices hovering near a six-year low, giving the strongest signal yet that OPEC wouldn’t act at the group’s meeting in Vienna to curb the global supply glut.
Saudi Arabia, the world’s largest crude exporter, may propose an eventual OPEC production cut of 1 million barrels of oil a day that may take affect in 2016, Energy Intelligence reported Thursday, citing a group delegate it didn’t identify.
The majority of OPEC members would agree to a reduction in crude production at Friday’s meeting, with the exception of Saudi Arabia and the Persian Gulf Arab countries, Shana reported, citing Mehdi Asali, director general of OPEC and energy forums at the Iranian Ministry of Petroleum.
Saudi Arabia will discuss all issues at the OPEC meeting on Friday and listen to concerns of other members, said the nation’s Oil Minister Ali al-Naimi.
Oil's global glut will be prolonged as US stockpiles see their longest run of gains in seven months.
Saudi Arabia is working with other OPEC members and producers from outside the group to stabilise the market, Saudi Oil Minister Ali al-Naimi said.
Saudi Aramco has signed a Memorandum of Understanding (MoU) to collaborate on new business opportunities with HHI (Hyundai Heavy Industries) in Saudi Arabia. The MoU included a multi-faceted framework in areas such as engineering, procurement and construction, downstream, and the development of a casting and forging facility. The agreement also includes the development of a maritime yard in the country.
A British grandfather who was sentenced to a flogging for breaking Saudi Arabia’s strict anti-alcohol laws has been reunited with his family in the UK. Karl Andree, 74, was threatened with 350 lashes after he was caught with home-made wine in Jeddah. He was put on a plane to Britain on Tuesday night after being freed from a Saudi prison, where he had been locked up since August last year.
Saudi Arabia could soon tap into international bond markets for the first time, according to reports. The Financial Times said the move was a growing signal of the challenges the country faces as lower oil prices impact its public finances. Officials in the country said Saudi Arabia could increase its debt levels by up to 50% of GDP (Gross Domestic Product) within five years.
Swedish refiner Preem has bought its first cargo of Saudi Arabian crude oil in around two decades. The purchase from another traditional buyer of Russia’s Urals crude is expected to heat up the contest for the market share which Saudi Arabia has effectively brought to Russia’s backyard in the Baltic region.
Saudi Arabia’s oil minister said the country is looking at raising domestic energy prices. Ali al-Naimi made the announcement in a move which could help reduce a lavish system of subsidies which has been blamed for waste and surging fuel consumption.
Saudi Arabia is delaying payments to government contractors as the slump in oil prices pushes the country into a deficit for the first time since 2009, according to three people with knowledge of the matter. Companies working on infrastructure projects have been waiting six months or more for payments as the government seeks to preserve cash, the people said, asking not to be identified as the information is private. Delays have increased this year and the government has also been seeking to cut prices on contracts, the people said.
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