Tired of cheap oil, Saudis eye price boost to drive Aramco IPO

Oil

  • Saudis eye price boost The commodity is trading at $44.59 per barrel at 09:40 GMT this morning, 0.71% lower from the New York close.
  • Crude oil witnessed a high of $45.08 per barrel and a low of $44.58 per barrel during the session. In the New York session yesterday, crude oil fell 2.14% to close at $44.91 per barrel,
  • after the EIA disclosed that US crude oil inventories rose more than expected by 2.3 million barrels to 525.9 million barrels during the week ended 26 August 2016. Immediate downside, the first support level is seen at $43.99 per barrel, while on the upside, the first resistance level is at $45.70 per barrel.

Saudi Arabia has seemingly had enough of cheap crude

Tired of cheap oil, Saudis eye price boost to drive Aramco IPO

Two years after triggering an oil price war, Saudi Arabia has seemingly had enough of cheap crude amid budget pressures, fear of a future supply shortage, and as it seeks to offload a stake in state-owned producer Aramco.

READ  DOLLAR Forex Price SLIPS LOWER AS MARKETS TURN TO NFP REPORT

The change in tone comes as OPEC and other producers such as Russia may resume talks on stabilizing output when they meet in Algeria later this month, after a similar effort to boost oil prices collapsed in April due to Saudi-Iranian tensions.

Other Stories you might like

“The Saudis are going to Algeria for a freeze,” said a source in the Organization of the Petroleum Exporting Countries who is familiar with the matter and declined to be identified.

“More and more ministers are now talking among themselves to evaluate their production position.”

OPEC in November 2014 made a landmark policy shift, led by Saudi Arabia, refusing to cut production by itself in the hope that lower prices would discourage higher-cost competitors that had eroded the group’s market share.

Further cementing the impression of a production free-for-all, OPEC ditched its last remaining supply-management tool, an output ceiling, in December 2015.

 

Click here for reuse options!
Copyright 2016 Investors Buz

Jadtecnic

Richard Dambrosi (JADTECNIC) Has Been Sharing FOREX INVESTORS ANALYSIS FORECAST since 2011. Editors and Founder of InvestorsBuz.com, has a passion for Forex Social Sharing analysis and Market Trends Such as Self Driving Cars, Electric Cars, Medical Marijuana, 3d printing and Cloud computing, Refers to Readers as BUZ INVESTORS.

Leave a Reply

Create Account



Log In Your Account