Aramco’s IPO to ensure local, global expansion: Al-Sabban

Saudi Aramco’s initial public offering (IPO) will pave the way for expanding its local and international investments, Mohammed Al-Sabban, an international economic and petroleum advisor, told Argaam in an exclusive at the Future Investment Initiative in Riyadh.

Being highly monitored, the world’s top oil exporter will enhance its production efficiency and cut total costs.

“Saudi Aramco’s nine-month financial results demonstrated that the company’s profitability was not impacted by the terrorist attacks on its facilities in Abqaiq and Khurais, but rather by lower oil prices,” he added.

The global oil market is likely to be hit by weak oil demand going forward.

“On the other hand, more oil will be poured into the markets by other producers, especially from outside OPEC,” Al-Sabban noted.

The US oil production rose to 13 million barrels per day this year – a very large volume that made the US the world’s largest oil producer. Its output will increase going forward backed by the continuous growth in oil shale production.

Other countries like Brazil have started to produce more oil. This in turn will lead to global oversupply amid slowed demand for oil.

“Accordingly, oil prices are forecast to range between $50 and $60 per barrel until the end of this year and probably next year as well, unless geopolitical conflicts change the equation,” he concluded.

For more details about Saudi Aramco IPO