Oil prices rise amid Saudi Arabia's output slash

Oil prices rise amid Saudi Arabia's output slash

Oil prices rise amid Saudi Arabia's output slash

Saudi Arabia has revealed a rise in crude oil reserves following an independent audit, lifting the lid on deposits that have been the subject of intense speculation since the Kingdom revealed plans to sell shares in its national oil company.

OPEC kingpin Saudi Arabia will slash its oil exports in January by 10 percent compared to November, the energy minister said Wednesday.

He said that Aramco would also issue bonds in the second-quarter of the year and that company financial details would be published as part of that process.

Al-Falih, noted that this also highlighted three other important realities: That these vast reserves are also among the lowest cost in the world, backed by world-leading economies of scale.

China Says Beijing Talks Lay Foundation For Trade Resolution
It also said the negotiations dealt with the need for "ongoing verification and effective enforcement". Lu said he had no details and an official statement would be issued later.

With the creation of RetailCo, a wholly owned subsidiary established for fuel retailing, "Saudi Aramco will be creating a sustainable and profitable business model for integrating across the hydrocarbon value chain", said Ahmed A. Al-Subaey, vice president of Marketing, Sales, and Supply Planning and chairman of the board of RetailCo.

The plans for the bond, first reported by Bloomberg News past year, came as the Saudi Arabian government reactivates a plan to sell shares in the company. The kingdom had initially targeted 2018.

Al-Falih did not disclose the size of the potential bond sale, but it could rank among the largest issued by a company if Aramco plans to finance a large chunk of the Sabic deal with it.

A trade agreement could mitigate the global economic slowdown and keep global oil demand high; however, failure to reach a deal would worsen economic growth prospects and keep a downward pressure on oil demand and prices, according to experts. Anheuser-Busch InBev NV took out US$46 billion in 2016 to finance the takeover of SABMiller Plc.

Utah Driver Participating in Viral ‘Bird Box Challenge’ Crashes Vehicle While Blindfolded
A teenager has crashed her auto while covering her eyes as part of the so-called Bird Box challenge. Layton police tweeted photos on Friday explaining the accident.

The most recent market rumors have had it that Aramco could fund the entire US$70-billion price tag for buying 70 percent in Sabic with the upcoming bond issue.

"It's not going to be anywhere near the number that's been rumored", he said.

The bond, likely to be combined with bank loans, would allow state-owned Aramco to pay the kingdom's sovereign wealth fund for its 70 per cent stake in Sabic. At that time, the company had about US$20 billion of borrowings, offset by US$19 billion of cash and equivalents.

Virat Kohli slams teammate at centre of sexism storm
Jadhav, MS Dhoni and Ambati Rayudu will form the middle order, and there will be keen interest in the latter duo's form here. The worrying aspect is Dhoni's strike-rate of 71.42, which is remarkably lower than his ODI career strike-rate of 87.89.

Related news