- Title: Saudi Aramco drops 10% after kingdom triggers oil price fall
- Date: 9th March 2020
- Summary: RAS TANURA, SAUDI ARABIA (FILE - MAY 23, 2018) (REUTERS) WATER / SAUDI OIL TANKER FILLING WITH FUEL VARIOUS OF TANKER FILLING / FLAGS FLYING SAUDI ARAMCO SHIP SAILING VARIOUS OF OIL TANK WITH LOGO OF SAUDI ARAMCO FUELLING PIPES AND TANKS VARIOUS OF OIL TANKS
- Keywords: Crown Prince Mohammed bin Salman Gulf OPEC Russia Saudi Arabia Saudi Aramco oil oil producing countries
- Reuters ID: LVA004C4BZRD3
- Location: RIYADH AND RAS TANURA, SAUDI ARABIA
- City: RIYADH AND RAS TANURA, SAUDI ARABIA
- Country: Saudi Arabia
- Duration: 00:00:52
- Aspect Ratio: 16:9
- Topics: Economic Events
- Story Text:Saudi Aramco shares fell by as much as 10% on Monday (March 9), dropping below their December listing price after Saudi Arabia and Russia said they would raise oil production in a battle for market share, sending crude prices down by a third.
Government bonds from Saudi Arabia and other Gulf oil producing countries were also pummelled after the collapse of the deal between OPEC, Russia and other oil producers that had propped up oil prices since 2016.
Aramco shares fell below their 32 riyals initial public offering price on Sunday for the first time since trading began in December. The Aramco listing was considered the culmination of Crown Prince Mohammed bin Salman's efforts to diversify the Saudi economy. The December IPO valued the company at $1.7 trillion in the world's biggest share offering.
Since then oil prices and oil companies' shares have come under pressure from fears over the impact of the coronavirus on oil demand and Russia's refusal to support deeper output cuts to bolster prices. As a result, the Organization of the Petroleum Exporting Countries has removed all limits on its own production.
Aramco shares closed at 28.35 riyals ($7.55), 11.4% below its IPO price. The shares closed 5.5% lower.
(Production: Mohammed Benmansour, Nael Shyoukhi)
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