Saudi Arabian Oil Co., aka, Aramco, the world’s largest oil producer, said it’s considering an initial public offering.
The company is likely worth trillions. Even if only a sliver were to be sold, it could easily be the largest IPO ever.
But what I find most fascinating is that Saudi Arabia is considering an IPO at a time when the oil price is very low. It suggests to me that their financial situation is tight at the present time because of the weak oil price.
I think this, to a large degree, puts to bed the idea that Saudi Arbia is deliberately pushing the oil price down to hurt Russia. I have always been in the David Stockman camp on this (SEE: It Doesn't Matter Who Controls the Oilfields that it has always been about supply and demand.
The Saudis are getting squeezed just like everyone else in the business right now.