Saudi Aramco IPO Priced And OPEC's 'Cut' To Support Oil Prices

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About: Saudi Aramco (ARMCO)
by: Robert Boslego
This article is exclusive for subscribers.
Robert Boslego
Portfolio strategy, oil & gas, medium-term horizon
Summary

Aramco IPO priced at $1.7 trillion.

OPEC decides on 500,000 b/d "cut" for 1Q20.

But it's producing at that level, so not a cut in reality.

1Q20 demand implies the largest 1Q global stock build since 2016.

Russia maneuvered its "cut" into an increase.

Saudi Aramco (ARMCO) priced its stock at SR32 or $8.53 per share. At that level, the firm has a valuation of $1.7 trillion, the highest of any listed company in the world.

But,