Saudi Arabia is one of the biggest oil-producing nations in the world. The country is also holding the head position at the Organization of the Petroleum Exporting Countries (OPEC). By reaping the benefit of the position, the country is going to buoy oil prices in the global market before the stock market debut of Saudi Aramco, state-owned oil company, worth $25 Billion.
This week, all the oil market associates of OPEC are due to meet for an agreement related to 2020’s oil production policy by OPEC oil cartel. In this meeting, the OPEC associates are expected to plan future steps regarding rein maintenance on their current oil output so that the global oil prices won’t tumble below $65 for a barrel. Saudi Arabia, in this meet, will make other associates follow oil-production limits as agreed before.
The country thinks that if oil production is kept limited, the upcoming Initial Public Offering (IPO) of its giant oil venture, Saudi Aramco may dig a good piece of gold for its global market debut planned in the next two weeks.
As per Thamer Ghadhban, Oil Minister, Iraq, the OPEC+—a merger of OPEC associates and external allies—will discuss to cut current supplies by nearly 400,000 oil barrels a day.
Saudi Aramco’s IPO is planned on the same day as the OPEC meeting to be held in OPEC headquarters, Vienna. As estimated, this listing will provide a commercially successful value to this most profitable venture in the world ranging from $1.5 Trillion to $1.7 Trillion. There will be also a raising worth $25 Billion for Riyadh later on.
In 2016, Mohammad Bin Salman, Crown Prince, Saudi Arabia, declared plans for attracting global investors by offering nearly 5% shares of Saudi Aramco in the Tadawul—country’s domestic oil market—which decreased the IPO vitality gradually.
The firmly raising consciousness about the compliance on OPEC and OPEC+ associates has already forced Nigeria and Iraq to put reins on their oil production. Saudi Arabia is also going to cut its oil production soon.