Saudi Aramco liquidates nearly $2 trillion worth as oil prices rise

Texas News Today

Dubai Saudi Arabia’s oil company Aramco closed on Wednesday. As the economy recovered from last year’s pandemic blockade, rising oil prices and rising energy demands embarrassed the $2 trillion valuation the Saudi crown prince had long sought.

Aramco touched a market capitalization of $2 trillion during the day, but eventually closed at $1.99 trillion, or 37.3 riyals ($9.95) per share. Transactions have not peaked since December 2019, a few days after the company was listed on the Saudi Stock Exchange.

Aramco currently ranks third as the world’s most valuable company after Microsoft and Apple, well above the combined value of some of the world’s largest oil companies.

Aramco’s gains were seen as Brent crude prices rose to around $82 a barrel, the highest in seven years. Energy demand is improving despite continued damage to travel and other major petrol-consuming sectors by the coronavirus.

advertisement

Saudi Arabia’s oil and gas producer, Aramco, is attracting the attention of energy traders and insiders due to its size and its importance to the global energy market. The company is almost wholly owned by the Saudi Arabian government, with just under 2% of Aramco listed on the Saudi Arabian Stock Exchange.

Although Aramco’s annual earnings fluctuate, the company is sticking to its commitment to pay out $75 billion annually to shareholders by 2024, the biggest of which is the government.

Crown Prince Mohammed bin Salman was the force behind the government’s efforts to publicly list Aramco’s slayer in late 2019 and promote it as a way to raise money for the kingdom’s sovereign wealth fund. He says the capital will be used to develop new cities and megaprojects across the country and create private sector jobs for young Saudis looking to enter the workforce.

advertisement

Ultimately, the Crown Prince decided to diversify the Saudi economy from relying on oil for income as energy shifts, climate change concerns and sustainability talks attracted more and more immediate global attention. I’m aiming

Aramco produces the kingdom’s vast oil and gas products and receives monthly supply and production orders from the energy ministry of OPEC’s leading country Saudi Arabia.

Oil demand will reach 99 million barrels per day by the end of the year and is projected to reach only 100 million barrels per day next year.

“I am glad that the worst is over,” OPEC Secretary-General Mohamed Balkind told the Virtual Energy Intelligence Forum on Wednesday.

An oil cartel led by Saudi Arabia and other major oil producers is involved. Russia led. This week, he said he maintained a gradual approach to recovering low production levels during the pandemic and agreed to add just 400,000 barrels per day in November. ..

advertisement

Balkind said their meeting on Monday lasted “a record 25 minutes”.

Iraqi Petroleum Minister Ehsan Ismail was also speaking at the Virtual Energy Intelligence Forum. He said reaching oil prices of $120 a barrel would be great for his country, which relies heavily on oil exports, but acknowledged that such costs were unsustainable. He said a range of $75 to $80 a barrel would be a “fair price” for both producers and consumers.

A rise in oil prices is a good sign for some producers, but not when White House National Security Adviser Jake Sullivan visited Riyadh last week to focus on a variety of issues with senior Saudi officials. He expressed concern over the rising prices. The White House said it wants to keep gasoline prices low for the American people.

Copyright 2021 AP Communications. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

LEAVE A REPLY

Please enter your comment!
Please enter your name here