OPEC and Russia seek to ratify deeper oil production cuts

Energy ministers from some of the world’s largest oil producers will attempt to ratify a deeper round of output cuts on Friday. OPEC and non-OPEC partners, sometimes referred to as OPEC+, have gathered in Vienna, Austria to decide the next phase of their oil production policy. OPEC will now request the approval of non-OPEC allies, including Russia, in a bid to prop up oil prices. Ahead of a meeting with non-OPEC allies, Iranian Oil Minister Bijan Zanganeh struck an upbeat tone. Oil prices have r


Energy ministers from some of the world’s largest oil producers will attempt to ratify a deeper round of output cuts on Friday.
OPEC and non-OPEC partners, sometimes referred to as OPEC+, have gathered in Vienna, Austria to decide the next phase of their oil production policy.
OPEC will now request the approval of non-OPEC allies, including Russia, in a bid to prop up oil prices.
Ahead of a meeting with non-OPEC allies, Iranian Oil Minister Bijan Zanganeh struck an upbeat tone.
Oil prices have r
OPEC and Russia seek to ratify deeper oil production cuts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: sam meredith
Keywords: news, cnbc, companies, oil, production, opec, ratify, zanganeh, energy, cuts, morning, output, nonopec, seek, russia, wti, deeper


OPEC and Russia seek to ratify deeper oil production cuts

Energy ministers from some of the world’s largest oil producers will attempt to ratify a deeper round of output cuts on Friday.

OPEC and non-OPEC partners, sometimes referred to as OPEC+, have gathered in Vienna, Austria to decide the next phase of their oil production policy.

Led by Saudi Arabia, the 14-member group agreed in principle on Thursday to cut production by an additional 500,000 barrels per day (b/d) through to the end of March 2020, according to CNBC sources. This level of output curbs is much larger than many had expected.

OPEC will now request the approval of non-OPEC allies, including Russia, in a bid to prop up oil prices.

Ahead of a meeting with non-OPEC allies, Iranian Oil Minister Bijan Zanganeh struck an upbeat tone.

“Everything is going ahead well,” Zanganeh told CNBC’s Brian Sullivan outside the OPEC headquarters on Friday morning. He predicted the energy alliance would be able to announce a deal “during the coming hours.”

International benchmark Brent crude traded at $63.53 on Friday morning, up around 0.2%, while U.S. West Texas Intermediate (WTI) stood at $58.47, little changed from the previous session.

Oil prices have rallied in recent trading sessions, amid intensifying speculation of deeper-than-anticipated production cuts. However, Brent crude futures remain around 15% lower when compared to an April peak, with WTI down almost 12% over the same period.


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: sam meredith
Keywords: news, cnbc, companies, oil, production, opec, ratify, zanganeh, energy, cuts, morning, output, nonopec, seek, russia, wti, deeper


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Oil on track for weekly gain as OPEC+ set to confirm supply cut

Oil prices fell on Friday, but were set for weekly gains ahead of the OPEC+ meeting which kicked off Friday in Vienna. OPEC’s current agreement is a supply cut of 1.2 million bpd and the increased amount represents about 1.7% of global oil output. Any price gains from the OPEC+ output cut are likely to benefit American producers not party to any supply curbing agreement. “North American shale supply will continue growing even in an environment with lower oil prices,” Rystad Energy said in a note


Oil prices fell on Friday, but were set for weekly gains ahead of the OPEC+ meeting which kicked off Friday in Vienna.
OPEC’s current agreement is a supply cut of 1.2 million bpd and the increased amount represents about 1.7% of global oil output.
Any price gains from the OPEC+ output cut are likely to benefit American producers not party to any supply curbing agreement.
“North American shale supply will continue growing even in an environment with lower oil prices,” Rystad Energy said in a note
Oil on track for weekly gain as OPEC+ set to confirm supply cut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06
Keywords: news, cnbc, companies, supply, oil, bpd, set, production, prices, opec, saudi, gain, cuts, confirm, weekly, track, global, cut


Oil on track for weekly gain as OPEC+ set to confirm supply cut

A truck used to carry sand for fracking is washed in a truck stop in Odessa, Texas.

Oil prices fell on Friday, but were set for weekly gains ahead of the OPEC+ meeting which kicked off Friday in Vienna.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia – a grouping known as OPEC+ – agreed on Thursday to more output cuts to avert oversupply as economic growth stagnates amid the U.S.-China trade war.

But OPEC stopped short of pledging action beyond March and analysts have questioned the impact of the latest curbs.

Brent futures were down 18 cents at $63.21, but are set to rise 1.5% on the week.

West Texas Intermediate oil futures fell 33 cents to $58.10 a barrel. They are set to rise nearly 6% on the week.

The cuts next year will expand the existing agreement by an extra 500,000 barrels per day (bpd) reduction in the first quarter next year, through tighter compliance and some adjustments. OPEC’s current agreement is a supply cut of 1.2 million bpd and the increased amount represents about 1.7% of global oil output.

“If we were to have an outcome of an extension of cuts with only the official quota of the OPEC+ group being reviewed lower (the 500,000 bpd), rather than actual production, then the change in supply policy would be cosmetic (given below target production in some countries, notably Saudi Arabia and Angola),” said Harry Tchilinguirian, global oil strategist at BNP Paribas.

OPEC is likely to shoulder 340,000 bpd in fresh cuts and non-OPEC producers an extra 160,000 bpd, one source said on Friday.

Any price gains from the OPEC+ output cut are likely to benefit American producers not party to any supply curbing agreement. American drillers have been breaking production records even as they cut the number of oil rigs in operation, filling gaps in global supplies.

“North American shale supply will continue growing even in an environment with lower oil prices,” Rystad Energy said in a note.

Higher oil prices are also supporting the initial public offering of Saudi Arabia’s state-owned oil company, Saudi Aramco, which priced its shares on Thursday at the top of an indicated range.

The sale was the world’s biggest initial public offering (IPO), beating Alibaba Group Holdings’ $25 billion listing in 2014, but fell short of a $2 trillion valuation for Aramco sought by Saudi Crown Prince Mohammed bin Salman.

Foreign investors stayed away and the sale was restricted to Saudi individuals and regional investors.


Company: cnbc, Activity: cnbc, Date: 2019-12-06
Keywords: news, cnbc, companies, supply, oil, bpd, set, production, prices, opec, saudi, gain, cuts, confirm, weekly, track, global, cut


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‘Is this the beginning of the end?’: OPEC discord raises questions about its long-term future

The future of OPEC looks increasingly uncertain, energy analysts told CNBC Friday, citing a deepening rift among the 14-member group. OPEC and non-OPEC partners, sometimes referred to as OPEC+, have gathered in Vienna, Austria to decide the next phase of their oil production policy. But it was initially unclear whether OPEC members had secured a deal, following an acrimonious meeting that ran late into the evening. Herman Wang, OPEC and Middle East specialist at S&P Global Platts, said Thursday’


The future of OPEC looks increasingly uncertain, energy analysts told CNBC Friday, citing a deepening rift among the 14-member group.
OPEC and non-OPEC partners, sometimes referred to as OPEC+, have gathered in Vienna, Austria to decide the next phase of their oil production policy.
But it was initially unclear whether OPEC members had secured a deal, following an acrimonious meeting that ran late into the evening.
Herman Wang, OPEC and Middle East specialist at S&P Global Platts, said Thursday’
‘Is this the beginning of the end?’: OPEC discord raises questions about its long-term future Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: sam meredith
Keywords: news, cnbc, companies, raises, questions, future, discord, oil, vienna, opec, beginning, wang, saudi, end, meeting, longterm, production, nonopec


'Is this the beginning of the end?': OPEC discord raises questions about its long-term future

The future of OPEC looks increasingly uncertain, energy analysts told CNBC Friday, citing a deepening rift among the 14-member group.

OPEC and non-OPEC partners, sometimes referred to as OPEC+, have gathered in Vienna, Austria to decide the next phase of their oil production policy.

Led by Saudi Arabia, the oil cartel agreed in principle on Thursday to cut production by an additional 500,000 barrels per day (b/d) through to the end of March 2020, according to CNBC sources.

But it was initially unclear whether OPEC members had secured a deal, following an acrimonious meeting that ran late into the evening.

Herman Wang, OPEC and Middle East specialist at S&P Global Platts, said Thursday’s meeting had caused him to question the long-term future of OPEC.

Speaking to CNBC’s Dan Murphy in Vienna on Friday, Wang said: “What we saw last night was not a unified OPEC. Is this the beginning of the end?”

Wang highlighted several issues that suggested a cause for concern, including Ecuador’s decision to quit the group at the end of the year, media reports of Angola’s delegate walking out of the OPEC meeting, Iraq consistently over-producing its quota and a strained relationship between OPEC kingpin Saudi Arabia and non-OPEC leader, Russia.

“It’s all about the unity of OPEC. Can they hold this coalition together to keep oil prices from falling?” he added.


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: sam meredith
Keywords: news, cnbc, companies, raises, questions, future, discord, oil, vienna, opec, beginning, wang, saudi, end, meeting, longterm, production, nonopec


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Oil rises as OPEC and allies announce deep production cut

Russian Energy Minister Alexander Novak said Moscow’s quota would be 300,000 b/d during the first three months of 2020. He also said that the kingdom would continue to exceed its quota by 400,000 barrels a day, which means the overall production cut will actually be closer to 2.1 million barrels a day. Oil moved higher on Friday as OPEC and its allies agreed to deepen oil production cuts to 500,000 barrels a day through to March 2020. This brings the total production cut to 1.7 million barrels a


Russian Energy Minister Alexander Novak said Moscow’s quota would be 300,000 b/d during the first three months of 2020.
He also said that the kingdom would continue to exceed its quota by 400,000 barrels a day, which means the overall production cut will actually be closer to 2.1 million barrels a day.
Oil moved higher on Friday as OPEC and its allies agreed to deepen oil production cuts to 500,000 barrels a day through to March 2020.
This brings the total production cut to 1.7 million barrels a
Oil rises as OPEC and allies announce deep production cut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: pippa stevens
Keywords: news, cnbc, companies, rises, quota, oil, opec, barrels, meeting, 2020, compliance, allies, total, production, announce, deep, day, cut


Oil rises as OPEC and allies announce deep production cut

Russian Energy Minister Alexander Novak said Moscow’s quota would be 300,000 b/d during the first three months of 2020. This measurement excludes gas condensate — a high-value light crude extracted as a by-product of gas production.

The country is OPEC’s de facto leader, and has been adamant that those who were previously been overproducing — such as Iraq and Nigeria — comply with the group’s quota.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman told reporters on Friday that the oil-rich kingdom’s quota would be an additional 167,000 b/d through to March 2020. He also said that the kingdom would continue to exceed its quota by 400,000 barrels a day, which means the overall production cut will actually be closer to 2.1 million barrels a day.

Oil moved higher on Friday as OPEC and its allies agreed to deepen oil production cuts to 500,000 barrels a day through to March 2020. This brings the total production cut to 1.7 million barrels a day.

On Thursday the 14-member cartel, as well as its allies, which is known as OPEC+ and includes Russia, agreed in principle to reduce output by an additional 500,000 barrels per day.

But as day two of meetings in Vienna kicked off Friday, there were still many questions, including how the quota would be allocated, and how long the agreement would stretch for. Friday’s meeting followed a tumultuous and marathon session Thursday. Talks stretched on for hours, and the customary press conference held after the meeting wraps was abruptly cancelled.

The duration of the deal was one of the key unknowns. On Friday OPEC said it would meet again on March 5-6. The cartel typically meets every six months, so the announcement had led some on the Street to believe the increased cut would only extend through the first quarter.

“It remains unclear what would occur in 2Q20, potentially reflecting Saudi’s new stance that they could walk away from this deal if other countries did not comply fully,” Goldman Sachs analyst Damien Courvalin said in a note to clients Thursday.

Another key factor was compliance. Currently several members including Iraq, Nigeria and Russia are over-producing. Saudi Arabia, on the other hand, exceeds its current target cut, and signaled ahead of OPEC’s meeting that stricter rules should be implemented.

“The Saudi message is compliance,” Mizuho managing director Paul Sankey said in a note to clients Friday.

The deeper-than-expected cut might not have all that much of an impact on oil prices, however, since ahead of Thursday’s meeting OPEC+, as a whole, was not even pumping as much as allotted.

“While we await full details from OPEC and non-OPEC, we think a 0.5MMbls/d announced cut relative to existing quotas is just enough to keep markets balanced for 2020,” Bernstein analyst Neil Beveridge said Friday. “Overall, a satisfactory outcome but investors will likely want to see evidence cuts are being delivered before getting too excited.”

Russia had also reportedly asked that condensates no longer be quoted as part of output for countries, a move which would reduce the total impact of the cuts.

“Everyone’s starting to do math. Between the condi [condensates] exemption and the current rate of over compliance, it’s not really a new larger cut,” Again Capital’s John Kilduff said to CNBC Thursday.

– CNBC’s Brian Sullivan, Patti Domm, Michael Bloom and Sam Meredith contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: pippa stevens
Keywords: news, cnbc, companies, rises, quota, oil, opec, barrels, meeting, 2020, compliance, allies, total, production, announce, deep, day, cut


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Saudi energy minister defends US shale producers: ‘They are creating jobs’

Saudi Energy minister Prince Abdulaziz bin Salman shakes hands with staff during his visit to an Aramco oil facility one day after the attacks in Abqaiq, Saudi Arabia September 15, 2019. Saudi Press Agency | ReutersSaudi Arabia’s Energy Minister Prince Abdulaziz bin Salman played down any rivalry between U.S. shale producers and more established oil producers in the Middle East. Due to the boom in U.S. shale production, alongside other factors, the OPEC energy alliance was prompted to act after


Saudi Energy minister Prince Abdulaziz bin Salman shakes hands with staff during his visit to an Aramco oil facility one day after the attacks in Abqaiq, Saudi Arabia September 15, 2019.
Saudi Press Agency | ReutersSaudi Arabia’s Energy Minister Prince Abdulaziz bin Salman played down any rivalry between U.S. shale producers and more established oil producers in the Middle East.
Due to the boom in U.S. shale production, alongside other factors, the OPEC energy alliance was prompted to act after
Saudi energy minister defends US shale producers: ‘They are creating jobs’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: matt clinch
Keywords: news, cnbc, companies, defends, creating, salman, abdulaziz, aramco, shale, minister, energy, oil, production, producers, jobs, saudi, opec


Saudi energy minister defends US shale producers: 'They are creating jobs'

Saudi Energy minister Prince Abdulaziz bin Salman shakes hands with staff during his visit to an Aramco oil facility one day after the attacks in Abqaiq, Saudi Arabia September 15, 2019. Saudi Press Agency | Reuters

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman played down any rivalry between U.S. shale producers and more established oil producers in the Middle East. Speaking to CNBC’s Hadley Gamble following an OPEC decision in Vienna, Austria, on Friday, Abdulaziz said: “They (U.S. shale producers) didn’t do anything wrong, they produced more barrels, they put the U.S. on the map in terms of its energy requirements, they are growing the economy, they are creating jobs.” The U.S. is now the world’s largest oil producer hitting 12.3 million b/d in 2019, according to the U.S. Energy Information Administration, up from 11 million b/d in 2018. It now produces more oil than Saudi Arabia and Russia, although there are signs that production growth is slowing in the States.

Due to the boom in U.S. shale production, alongside other factors, the OPEC energy alliance was prompted to act after global oil prices tumbled in mid-2014. U.S. shale producers were not part of that deal and shale oil supply grew exponentially as OPEC producers curbed output. “They did a remarkable job,” Abdulaziz told CNBC regarding the U.S. energy industry. He spoke of “legal limitations” when asked whether there could be pact with shale producers in the future, but said that Saudi Aramco — his country’s state-owned oil firm — “would go more and more international.” In May, Aramco signed an agreement to buy U.S. liquefied natural gas from San Diego-based utility Sempra Energy, which helped to advance its ambitions to become a player in the growing international gas market.


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: matt clinch
Keywords: news, cnbc, companies, defends, creating, salman, abdulaziz, aramco, shale, minister, energy, oil, production, producers, jobs, saudi, opec


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OPEC supply cut not timed for Aramco listing, Saudi energy minister says

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman told CNBC that an agreement to further trim global oil supply wasn’t intentionally timed to coincide with the initial public offering (IPO) of state-owned energy company Saudi Aramco. On Friday, OPEC and its allies — a wider grouping termed OPEC+ — agreed to cut an extra 500,000 barrels per day (bpd) of their oil production during the first three months of 2020. Abdulaziz said Saudi Aramco’s value couldn’t be evaluated by “a tweak here o


Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman told CNBC that an agreement to further trim global oil supply wasn’t intentionally timed to coincide with the initial public offering (IPO) of state-owned energy company Saudi Aramco.
On Friday, OPEC and its allies — a wider grouping termed OPEC+ — agreed to cut an extra 500,000 barrels per day (bpd) of their oil production during the first three months of 2020.
Abdulaziz said Saudi Aramco’s value couldn’t be evaluated by “a tweak here o
OPEC supply cut not timed for Aramco listing, Saudi energy minister says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: david reid
Keywords: news, cnbc, companies, aramco, timed, ipo, minister, supply, listing, energy, oil, cut, tweak, prince, told, saudi, opec


OPEC supply cut not timed for Aramco listing, Saudi energy minister says

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman told CNBC that an agreement to further trim global oil supply wasn’t intentionally timed to coincide with the initial public offering (IPO) of state-owned energy company Saudi Aramco.

On Thursday, Aramco priced its IPO at 32 riyals per share ($8.53), putting it on track to raise $25.6 billion in what would be the largest IPO ever conducted.

On Friday, OPEC and its allies — a wider grouping termed OPEC+ — agreed to cut an extra 500,000 barrels per day (bpd) of their oil production during the first three months of 2020.

Following the announcement, Abdulaziz told CNBC’s Hadley Gamble that the two events weren’t linked. “The fact that they coincided, people try to draw a correlation between the two. Some media outlets tried to use that as a way to explain what we are trying to do at this meeting,” he said.

Abdulaziz said Saudi Aramco’s value couldn’t be evaluated by “a tweak here or a tweak there” in the oil supply. He said that the list of institutional investors for Aramco signaled that organizations were keen to back the firm for the long term.

A small portion of Saudi Aramco will start trading on the local stock exchange on Wednesday, December 11. He described the decision to list locally as the “brightest day of his life,” as the benefit of the listing would go, first and foremost, to “our people” and to others who “believe in Saudi Arabia.”

The prince said he believes those who choose not to take part in the listing will soon be “chewing their thumb” with regret.


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: david reid
Keywords: news, cnbc, companies, aramco, timed, ipo, minister, supply, listing, energy, oil, cut, tweak, prince, told, saudi, opec


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Oil moves higher as OPEC reportedly prepares for larger-than-expected cuts

Oil moved higher on Thursday on reports that OPEC would announce a larger-than-expected cut at its biannual meeting, which kicked off Thursday in Vienna. Ahead of the meeting, analysts had widely expected a 400,000 barrel production cut. Production cuts were first implemented in January of 2017 in an attempt to bolster prices as the U.S. kicked up its shale oil production, among other things. As the meeting kicked off reports conflicted over who proposed the cuts. WTI briefly sold off after CNBC


Oil moved higher on Thursday on reports that OPEC would announce a larger-than-expected cut at its biannual meeting, which kicked off Thursday in Vienna.
Ahead of the meeting, analysts had widely expected a 400,000 barrel production cut.
Production cuts were first implemented in January of 2017 in an attempt to bolster prices as the U.S. kicked up its shale oil production, among other things.
As the meeting kicked off reports conflicted over who proposed the cuts.
WTI briefly sold off after CNBC
Oil moves higher as OPEC reportedly prepares for larger-than-expected cuts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: pippa stevens
Keywords: news, cnbc, companies, meeting, oil, moves, salman, cuts, saudi, opec, largerthanexpected, higher, russia, production, prepares, cut, reportedly, kicked


Oil moves higher as OPEC reportedly prepares for larger-than-expected cuts

Oil moved higher on Thursday on reports that OPEC would announce a larger-than-expected cut at its biannual meeting, which kicked off Thursday in Vienna.

Key members of OPEC+, which includes the 14-member cartel as well as its allies including Russia, recommended that production cuts increase by 500,000 barrels per day, according to a Reuters report citing Russian energy minister Alexander Novak.

U.S. West Texas Intermediate gained 46 cents, or 0.8%, to trade at $58.89 a barrel. Brent crude futures were up more than 1% to reach $63.70 a barrel.

Ahead of the meeting, analysts had widely expected a 400,000 barrel production cut.

Helima Croft, RBC head of global commodities strategy, said to CNBC on Thursday that it was her understanding that a larger cut has the support of the OPEC core operating group, as well as its partner Russia ahead of the meeting.

24-country OPEC+ has cut output by 1.2 million barrels per day since the beginning of the year, and the current deal runs through March of 2020. Production cuts were first implemented in January of 2017 in an attempt to bolster prices as the U.S. kicked up its shale oil production, among other things.

As the meeting kicked off reports conflicted over who proposed the cuts. WTI briefly sold off after CNBC reported that one senior Saudi oil official denied pursuing a deeper round of production cuts. On Monday Reuters had previously reported that Saudi Arabia could be in favor of deeper cuts in order to give Aramco a boost as it hit the public market.

Also in focus will be individual country’s production output. Again Capital’s John Kilduff said that he believes Saudi Arabia is “open” to a cut, but that the most important thing to the nation is that country’s comply with the quotas that are currently in place.

This is the first meeting with the new Saudi energy minister, Prince Abdul Aziz bin Salman, who is the son of the King and half-brother to Crown Prince Mohammed bin Salman.

– CNBC’s Patti Domm, Sam Meredith and Holly Ellyatt contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: pippa stevens
Keywords: news, cnbc, companies, meeting, oil, moves, salman, cuts, saudi, opec, largerthanexpected, higher, russia, production, prepares, cut, reportedly, kicked


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Saudi Aramco prices shares at the top of the range for record IPO, report says

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia. DUBAI — Saudi Arabian Oil Company, or Saudi Aramco, has priced its shares at the top of its indicative range for its initial public offering (IPO), Reuters reported Thursday citing three sources familiar with the decision. The shares have been priced at 32 riyals ($8.53), with a formal announcement expected later on Thursday, according to the news agency. That 1% is equiva


An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia.
DUBAI — Saudi Arabian Oil Company, or Saudi Aramco, has priced its shares at the top of its indicative range for its initial public offering (IPO), Reuters reported Thursday citing three sources familiar with the decision.
The shares have been priced at 32 riyals ($8.53), with a formal announcement expected later on Thursday, according to the news agency.
That 1% is equiva
Saudi Aramco prices shares at the top of the range for record IPO, report says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: natasha turak
Keywords: news, cnbc, companies, ipo, prices, range, stock, oil, billion, record, saudi, aramcos, riyals, public, shares, priced, worlds, aramco, report


Saudi Aramco prices shares at the top of the range for record IPO, report says

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia.

DUBAI — Saudi Arabian Oil Company, or Saudi Aramco, has priced its shares at the top of its indicative range for its initial public offering (IPO), Reuters reported Thursday citing three sources familiar with the decision.

The shares have been priced at 32 riyals ($8.53), with a formal announcement expected later on Thursday, according to the news agency. This means it is set to raise $25.6 billion and will likely beat Alibaba to be the world’s largest ever stock market flotation.

The long-awaited IPO of the world’s largest and most profitable company will list locally on the Tadawul, Saudi Arabia’s stock exchange, and forms the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 aimed at transforming the Saudi economy.

The pricing announcement will follow a-week long local roadshow around the Middle East that saw Aramco’s local listing oversubscribed by nearly three times, attracting offers worth 189.04 billion riyals ($50.4 billion), according to banks advising the listing. Institutional investors had between Nov. 17 and Dec. 4 to place their orders.

Aramco has said in the past that 0.5% of its listed shares would be available to individual retail buyers, while the remaining 1% would be for institutional investors. That 1% is equivalent to 2 billion shares. In the first two and a half weeks of Aramco’s bookbuilding period, it drew subscription orders for 5.9 billion shares.

Gulf allies in the United Arab Emirates and Kuwait have made substantial commitments to the Saudi project, with the Kuwait Investment Authority and Abu Dhabi reportedly investing up to $1 billion and $1.5 billion in the public offering, respectively, though they have not commented publicly on the matter.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: natasha turak
Keywords: news, cnbc, companies, ipo, prices, range, stock, oil, billion, record, saudi, aramcos, riyals, public, shares, priced, worlds, aramco, report


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Saudi Arabia denies pushing OPEC allies to commit to a deeper round of production cuts, source says

OPEC kingpin Saudi Arabia has denied pursuing a deeper round of production cuts, one senior oil official told CNBC on Thursday, despite intense speculation the global oil-producing group was on the cusp of imposing further output curbs. The oil-rich kingdom was widely considered to be pushing for other OPEC members to sign up for at least an additional 400,000 barrels per day (bpd) of production cuts. But, one anonymous Saudi oil official told CNBC on the sidelines of a meeting in Vienna, Austri


OPEC kingpin Saudi Arabia has denied pursuing a deeper round of production cuts, one senior oil official told CNBC on Thursday, despite intense speculation the global oil-producing group was on the cusp of imposing further output curbs.
The oil-rich kingdom was widely considered to be pushing for other OPEC members to sign up for at least an additional 400,000 barrels per day (bpd) of production cuts.
But, one anonymous Saudi oil official told CNBC on the sidelines of a meeting in Vienna, Austri
Saudi Arabia denies pushing OPEC allies to commit to a deeper round of production cuts, source says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: sam meredith
Keywords: news, cnbc, companies, round, oil, output, vienna, cuts, saudi, opec, pushing, told, production, official, commit, denies, deeper, source


Saudi Arabia denies pushing OPEC allies to commit to a deeper round of production cuts, source says

OPEC kingpin Saudi Arabia has denied pursuing a deeper round of production cuts, one senior oil official told CNBC on Thursday, despite intense speculation the global oil-producing group was on the cusp of imposing further output curbs.

The oil-rich kingdom was widely considered to be pushing for other OPEC members to sign up for at least an additional 400,000 barrels per day (bpd) of production cuts. But, one anonymous Saudi oil official told CNBC on the sidelines of a meeting in Vienna, Austria that this was not the case — and Riyadh had not proposed any figures.

OPEC and non-OPEC allies — sometimes referred to as OPEC+ — have gathered in Vienna this week to discuss the next phase of their oil production policy. The 14-member group will hold talks on Thursday, before meeting with non-OPEC allies, including Russia, on Friday.

The energy alliance has reduced output by 1.2 million bpd since the beginning of the year. The current deal, which runs through to March 2020, replaced a previous round of production cuts that began in January 2017.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: sam meredith
Keywords: news, cnbc, companies, round, oil, output, vienna, cuts, saudi, opec, pushing, told, production, official, commit, denies, deeper, source


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OPEC meets amid speculation over further oil production cuts

Global oil-producing group OPEC and its allies are meeting in Vienna from Thursday, with expectations raised over whether the alliance will make further cuts to its output at the two-day gathering. OPEC meets on Thursday and the group will be joined by its non-OPEC allies on Friday — with a final decision likely that afternoon. Oil prices rose around 4% Wednesday off the back of Iraq’s suggestion for deeper cuts and there is a chance the production group will ultimately agree to cut more. Iraqi


Global oil-producing group OPEC and its allies are meeting in Vienna from Thursday, with expectations raised over whether the alliance will make further cuts to its output at the two-day gathering.
OPEC meets on Thursday and the group will be joined by its non-OPEC allies on Friday — with a final decision likely that afternoon.
Oil prices rose around 4% Wednesday off the back of Iraq’s suggestion for deeper cuts and there is a chance the production group will ultimately agree to cut more.
Iraqi
OPEC meets amid speculation over further oil production cuts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: holly ellyatt
Keywords: news, cnbc, companies, cut, opec, production, nonopec, vienna, group, meets, russia, meeting, oil, million, bpd, cuts, speculation, amid


OPEC meets amid speculation over further oil production cuts

Journalists interview oil Ministers on the sidelines of the 176th meeting of the Organization of the Petroleum Exporting Countries (OPEC) conference and the 6th meeting of the OPEC and non-OPEC countries on July 1, 2019 in Vienna, Austria.

Global oil-producing group OPEC and its allies are meeting in Vienna from Thursday, with expectations raised over whether the alliance will make further cuts to its output at the two-day gathering.

The 14 members of OPEC and a group of allied non-OPEC producers led by Russia (collectively known as OPEC+) are expected to at least keep production cuts at their current level of 1.2 million barrels per day (bpd) through to June 2020.

The agreement is currently due to expire in March but there’s speculation that the group could even opt to cut further if Russia agrees. OPEC meets on Thursday and the group will be joined by its non-OPEC allies on Friday — with a final decision likely that afternoon.

Oil prices rose around 4% Wednesday off the back of Iraq’s suggestion for deeper cuts and there is a chance the production group will ultimately agree to cut more.

Iraqi Oil Minister Thamir Al-Ghadbhan endorsed a deeper cut, telling CNBC on Wednesday that the current cut of 1.2 million bpd “is not really that effective.” He said a 1.6 million bpd cut would be more effective.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: holly ellyatt
Keywords: news, cnbc, companies, cut, opec, production, nonopec, vienna, group, meets, russia, meeting, oil, million, bpd, cuts, speculation, amid


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