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World’s Largest Oil Producer Aramco Considers IPO
The world’s largest oil producer and one of the lowest-cost oil producers, Saudi Arabia’s state-owned Saudi Aramco, could soon become publicly traded over the next few months. This news comes after the US crude oil benchmark, West Texas Intermediate Crude, sold at its lowest price in 14 years at $32.10 a barrel.
Saudi Aramco, reportedly worth trillions of dollars, is expecting a massive deficit this year because of oil’s declining values. Over the past year and a half, US shale-oil production has been held accountable for the rapidly waning oil prices.
Muhammad bin Salman, Saudi Arabia’s deputy crown prince, announced this consideration as a way to open the country’s closed economy. The company does not release any revenue information, but this could be the first step to make the business more transparent and improve the country’s economic future.
