Saudi State Oil Armco Could Place Shares in Stock Market
By Alfonso Esparza on Jan 8, 2016 10:25:16 GMT
Amid a global oil supply glut, Saudi Arabia is thinking about listing shares in its state-owned oil company, Saudi Aramco, according to The Economist. One of the biggest companies in the world, Aramco is also the world’s biggest oil producer and is worth “trillions of dollars,” according to Saudi officials.
The deputy crown price of Saudi Arabia, Muhammad bin Salman, told The Economist in his first on-the-record interview that a decision about a potential listing will most likely take place in the next few months.
The plan to list the company is a possible step to balance Saudi Arabia’s budget and deal with the oil-price collapse to below $35 a barrel. While the company already has significant sway over prices, if a small part of its shares were placed on the Saudi stock exchange, this influence could grow even greater.
About Alfonso Esparza
Senior Currency Strategist, OANDA, Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto. Follow on Twitterand on his Google+ profile.
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