Saudi Arabia’s proposed IPO of the kingdom’s state oil company, Saudi Aramco signals that oil prices are here to stay for the foreseeable future, according to a research report Oppenheimer issued to clients on Monday.
Saudi Arabia looks to be positioning itself to weather a prolonged period of depressed oil prices, with the rebalancing of its budget and the proposed IPO of Aramco. The country’s government has set its 2016 budget at $226 billion, down 14% year-on-year with revenues of $138 billion, including $100 billion from oil exports — 73% of the total. The government is predicting a budget deficit of $87 billion this year, down from $98 billion for full-year 2015. Based on these figures Oppenheimer concludes that the...
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