All that you need to know about Saudi Aramco, the oil colossus

Saudi Crown Prince Mohammed bin Salman is expected on Sunday to formally launch a<a href="https://www.wionews.com/world/aramco-ipo-will-be-saudi-crown-princes-decision-minister-258759"> long-anticipated stock offering of Saudi Aramco</a>, a person close to the matter said Friday.

The <a href="https://www.wionews.com/business-economy/saudi-aramco-to-keep-46-million-barrels-of-oil-in-indian-storage-report-258774">Aramco stock listing</a>, a key component of bin Salman's overall policy agenda, will offer a small fraction of the petroleum giant.

Valued at between $1.5 and $1.7 trillion, Aramco is the biggest company ever.

Aramco is expected to sell a total of five per cent on two exchanges, with an initial listing of two per cent on the Tadawul Saudi bourse in December.

That will be followed next year by a three per cent listing in overseas exchange, but that has yet to be picked, the person said.

Prince Mohammed is expected on Sunday to provide specifics on the domestic aspects of the IPO, including a date, the person added.

The kingdom's de facto ruler, Prince Mohammed has viewed the stock offering as a critical component of "Vision 2030," a program to diversify the Saudi economy and shift Aramco from "an oil-producing company into a global industrial conglomerate," according to the Saudi government website.

The plan also envisions building half of Saudi weapons systems within the kingdom itself.

Aramco was expected to launch the first part of the two-stage IPO in October, but the process has been delayed, reportedly due to the prince's dissatisfaction with the valuation of the firm, which fell short of the hoped-for $2 trillion.

Aramco executives have encountered scepticism among investors in London and New York on questions about the firm's transparency, governance practices and targeted valuation, the source told AFP.

Architects of the offering have targeted rich Saudi families and local asset managers as buyers of the stock and prodded Saudi banks to make financing available to retail investors to support the offering, Bloomberg reported.&nbsp;

Andrew Lebow, senior partner at Commodity Research Group and an expert on oil markets, said Aramco has become more transparent, but that there were still questions about how much it will disclose.

"It's hard to say whether we are going to get the full picture," Lebow said. "Certainly Aramco is much more transparent than they have ever been, but whether we are going to see the financials with the full clarity is an open question."

The offering means that "for the first time Aramco is going to have to deal with shareholders," Lebow said. "Those meetings should be pretty interesting."

Saudi Crown Prince Mohammed bin Salman is expected on Sunday to formally launch a long-anticipated stock offering of Saudi Aramco, a person close to the matter said Friday.

Saudi Crown Prince Mohammed bin Salman is expected on Sunday to formally launch a long-anticipated stock offering of Saudi Aramco, a person close to the matter said Friday. The Aramco stock listing, a key component of bin Salman's overall policy agenda, will offer a small fraction of the petroleum giant. Valued at between $1.5 and $1.7 trillion, Aramco is the biggest company ever. Aramco is expected to sell a total of five per cent on two exchanges, with an initial listing of two per cent on the Tadawul Saudi bourse in December. That will be followed next year by a three per cent listing in overseas exchange, but that has yet to be picked, the person said. Prince Mohammed is expected on Sunday to provide specifics on the domestic aspects of the IPO, including a date, the person added. The kingdom's de facto ruler, Prince Mohammed has viewed the stock offering as a critical component of "Vision 2030," a program to diversify the Saudi economy and shift Aramco from "an oil-producing company into a global industrial conglomerate," according to the Saudi government website. The plan also envisions building half of Saudi weapons systems within the kingdom itself. Aramco was expected to launch the first part of the two-stage IPO in October, but the process has been delayed, reportedly due to the prince's dissatisfaction with the valuation of the firm, which fell short of the hoped-for $2 trillion. Aramco executives have encountered scepticism among investors in London and New York on questions about the firm's transparency, governance practices and targeted valuation, the source told AFP. Architects of the offering have targeted rich Saudi families and local asset managers as buyers of the stock and prodded Saudi banks to make financing available to retail investors to support the offering, Bloomberg reported. Andrew Lebow, senior partner at Commodity Research Group and an expert on oil markets, said Aramco has become more transparent, but that there were still questions about how much it will disclose. "It's hard to say whether we are going to get the full picture," Lebow said. "Certainly Aramco is much more transparent than they have ever been, but whether we are going to see the financials with the full clarity is an open question." The offering means that "for the first time Aramco is going to have to deal with shareholders," Lebow said. "Those meetings should be pretty interesting."

Saudi Crown Prince to formally launch Aramco IPO on Sunday: Report

India will lease a quarter of its strategic petroleum reserve in Padur to Saudi Aramco to store about 4.6 million barrels of oil, a government official said on Wednesday, as New Delhi seeks global investment in its expanding energy infrastructure.

Global oil producers are eager to gain a foothold in India, where fuel demand is expected to keep rising as the country's economy grows.

Indian Strategic Petroleum Reserves Ltd, a government company charged with building oil storage, signed a memorandum of understanding with the Saudi state firm for its participation in the 2.5-million-tonne facility in Karnataka state.

"Aramco has signed an MoU for only one compartment," said HPS Ahuja, chief executive of the Indian company.

The Padur storage facility has four equal-sized compartments.

So far, Abu Dhabi National Oil Co is the only foreign company storing oil in India's strategic reserves, at Mangalore, also in Karnataka. Last year it signed a preliminary agreement to use half of the Padur reserve.

Ahuja said Aramco would have to keep some of the 4.6 million barrels for India's strategic needs, but could sell the rest to Indian refiners.

India, which relies on imports for about 80% of its oil needs, has underground emergency storage in three locations to protect against any supply disruption. The reserves can hold 36.87 million barrels.

India will lease a quarter of its strategic petroleum reserve in Padur to Saudi Aramco to store about 4.6 million barrels of oil, a government official said on Wednesday, as New Delhi seeks global investment in its expanding energy infrastructure.

India will lease a quarter of its strategic petroleum reserve in Padur to Saudi Aramco to store about 4.6 million barrels of oil, a government official said on Wednesday, as New Delhi seeks global investment in its expanding energy infrastructure. Global oil producers are eager to gain a foothold in India, where fuel demand is expected to keep rising as the country's economy grows. Indian Strategic Petroleum Reserves Ltd, a government company charged with building oil storage, signed a memorandum of understanding with the Saudi state firm for its participation in the 2.5-million-tonne facility in Karnataka state. "Aramco has signed an MoU for only one compartment," said HPS Ahuja, chief executive of the Indian company. The Padur storage facility has four equal-sized compartments. So far, Abu Dhabi National Oil Co is the only foreign company storing oil in India's strategic reserves, at Mangalore, also in Karnataka. Last year it signed a preliminary agreement to use half of the Padur reserve. Ahuja said Aramco would have to keep some of the 4.6 million barrels for India's strategic needs, but could sell the rest to Indian refiners. India, which relies on imports for about 80% of its oil needs, has underground emergency storage in three locations to protect against any supply disruption. The reserves can hold 36.87 million barrels.

Saudi Aramco to keep 4.6 million barrels of oil in Indian storage: Report

<a href="https://www.wionews.com/world/united-states-blames-iran-for-saudi-attacks-pretend-diplomacy-249751">US</a> Secretary of State Mike Pompeo departed for Saudi Arabia Tuesday to discuss possible retaliation after Washington said it had proof that attacks on Saudi oil installations originated in <a href="https://www.wionews.com/world/iran-dismisses-us-claim-it-was-behind-saudi-oil-attacks-says-ready-for-war-249810">Iran</a>.

Vice President Mike Pence announced that Pompeo was on his way to the kingdom to "discuss our response."

"As the president said, we don't want war with anybody but the United States is prepared," Pence said in a speech in Washington.

"We're locked and loaded and we're ready to defend our interests and allies in the region, make no mistake about it," he said, echoing President Donald Trump's words on Sunday.

A US official, speaking on condition of anonymity, told AFP that the Trump administration has concluded that last weekend's attack involved cruise missiles from Iran and that evidence would be presented at the UN General Assembly next week.

The apparent hardening of the US position came as Iran's supreme leader ruled out negotiations with Washington "at any level."

This appeared to nix remaining hopes for a dramatic meeting between <a href="https://www.wionews.com/world/white-house-does-not-rule-out-trump-rouhani-meeting-after-saudi-attacks-249856">Trump and Iranian President Hassan Rouhani</a> at the United Nations next week.

Speaking to reporters on Air Force One over California, Trump said he too had cooled on what had always seemed to be a diplomatic longshot.

"I never rule anything out, but I prefer not meeting him," Trump said.

'It's not possible'

Yemen's Iranian-backed Huthi rebels claimed responsibility for Saturday's oil installation attacks, which halved output from the petro-state, a close ally of Washington.

But a senior US administration official cast doubt on that claim, saying that while the Huthis said they used 10 drones, one Saudi oil facility was hit "at least 17 times," and another twice by "precision-guided munitions."

Additionally, neither the type of drone "nor the cruise missiles employed in the attack can reach the facilities from Yemen. It's not possible," the official said.

The Huthis are at war with Saudi-backed forces in Yemen, turning the impoverished nation into a proxy battlefield for bitter regional rivals Tehran and Riyadh.

The increasingly complex conflict dovetails with the Trump administration's attempt to curb Iranian power through a "maximum pressure" campaign of crippling economic sanctions.

Trump began that campaign after unilaterally pulling out of a 2015 international deal meant to reward Iran for allowing restrictions on its nuclear industry.

He says that Tehran is secretly cheating and trying to build nuclear weapons and must be stopped.

Supreme leader Ayatollah Ali Khamenei said Washington's real goal was to bring his country to its knees.

"The policy of 'maximum pressure' against the Iranian nation is worthless and all Islamic Republic of Iran officials unanimously believe there will be no negotiations with the US at any level," he said in a televised address.

Khamenei also said that as long as sanctions are in place, direct talks are impossible, including a meeting at the UN.

'Support for war?'

Whether the new stage of the long-running US-Iranian standoff leads to conflict is the big unknown.

Saudi Arabia, which has bought huge quantities of US weaponry, is considered a strategic ally in the region, second to Israel, another bitter foe of Iran.

Trump called off a retaliatory US missile attack on Iran in June after the Iranians shot down a spy drone. He said he did not want to kill what generals told him could be up to 150 people.

Trump's administration is considering responses to the latest attack including a cyber attack or a physical strike on Iranian oil infrastructure or its Revolutionary Guards, NBC News reported, citing unnamed US officials.

Republican Lindsey Graham&nbsp;a vital Trump ally in Congress struck a belligerent tone Tuesday, charging that "such a sophisticated attack could not have occurred without Iran's blessing and direct involvement."

"This is literally an act of war," Graham said.

'Oil market nervous'

The strikes hit Abqaiq, the world's largest oil processing facility, and the Khurais oil field in eastern Saudi Arabia.

<a href="https://www.wionews.com/world/oil-falls-more-than-1-per-cent-as-market-awaits-response-to-saudi-oil-attacks-250122">Oil prices</a>&nbsp;receded more than five per cent on Tuesday, reversing some of the previous day's gains as analysts said they were expecting Saudi output to recover sooner than expected.

US Secretary of State Mike Pompeo departed for Saudi Arabia Tuesday to discuss possible retaliation after Washington said it had proof that attacks on Saudi oil installations originated in Iran.

US Secretary of State Mike Pompeo departed for Saudi Arabia Tuesday to discuss possible retaliation after Washington said it had proof that attacks on Saudi oil installations originated in Iran. Vice President Mike Pence announced that Pompeo was on his way to the kingdom to "discuss our response." "As the president said, we don't want war with anybody but the United States is prepared," Pence said in a speech in Washington. "We're locked and loaded and we're ready to defend our interests and allies in the region, make no mistake about it," he said, echoing President Donald Trump's words on Sunday. A US official, speaking on condition of anonymity, told AFP that the Trump administration has concluded that last weekend's attack involved cruise missiles from Iran and that evidence would be presented at the UN General Assembly next week. The apparent hardening of the US position came as Iran's supreme leader ruled out negotiations with Washington "at any level." This appeared to nix remaining hopes for a dramatic meeting between Trump and Iranian President Hassan Rouhani at the United Nations next week. Speaking to reporters on Air Force One over California, Trump said he too had cooled on what had always seemed to be a diplomatic longshot. "I never rule anything out, but I prefer not meeting him," Trump said. 'It's not possible' Yemen's Iranian-backed Huthi rebels claimed responsibility for Saturday's oil installation attacks, which halved output from the petro-state, a close ally of Washington. But a senior US administration official cast doubt on that claim, saying that while the Huthis said they used 10 drones, one Saudi oil facility was hit "at least 17 times," and another twice by "precision-guided munitions." Additionally, neither the type of drone "nor the cruise missiles employed in the attack can reach the facilities from Yemen. It's not possible," the official said. The Huthis are at war with Saudi-backed forces in Yemen, turning the impoverished nation into a proxy battlefield for bitter regional rivals Tehran and Riyadh. The increasingly complex conflict dovetails with the Trump administration's attempt to curb Iranian power through a "maximum pressure" campaign of crippling economic sanctions. Trump began that campaign after unilaterally pulling out of a 2015 international deal meant to reward Iran for allowing restrictions on its nuclear industry. He says that Tehran is secretly cheating and trying to build nuclear weapons and must be stopped. Supreme leader Ayatollah Ali Khamenei said Washington's real goal was to bring his country to its knees. "The policy of 'maximum pressure' against the Iranian nation is worthless and all Islamic Republic of Iran officials unanimously believe there will be no negotiations with the US at any level," he said in a televised address. Khamenei also said that as long as sanctions are in place, direct talks are impossible, including a meeting at the UN. 'Support for war?' Whether the new stage of the long-running US-Iranian standoff leads to conflict is the big unknown. Saudi Arabia, which has bought huge quantities of US weaponry, is considered a strategic ally in the region, second to Israel, another bitter foe of Iran. Trump called off a retaliatory US missile attack on Iran in June after the Iranians shot down a spy drone. He said he did not want to kill what generals told him could be up to 150 people. Trump's administration is considering responses to the latest attack including a cyber attack or a physical strike on Iranian oil infrastructure or its Revolutionary Guards, NBC News reported, citing unnamed US officials. Republican Lindsey Graham a vital Trump ally in Congress struck a belligerent tone Tuesday, charging that "such a sophisticated attack could not have occurred without Iran's blessing and direct involvement." "This is literally an act of war," Graham said. 'Oil market nervous' The strikes hit Abqaiq, the world's largest oil processing facility, and the Khurais oil field in eastern Saudi Arabia. Oil prices receded more than five per cent on Tuesday, reversing some of the previous day's gains as analysts said they were expecting Saudi output to recover sooner than expected.

Mike Pompeo heads to Saudi Arabia after US blames Iran

Saudi&nbsp;Aramco's&nbsp;trading&nbsp;arm&nbsp;is looking for oil&nbsp;products&nbsp;for prompt delivery&nbsp;after&nbsp;Saturday's&nbsp;attacks&nbsp;on&nbsp;<a href="https://www.wionews.com/world/dont-need-middle-east-oil-gas-but-will-help-our-allies-says-trump-after-attacks-on-saudi-arabias-aramco-250005">Saudi oil facilities</a>, several trade&nbsp;sources&nbsp;said this week.

<a href="https://www.wionews.com/world/saudi-arabia-shuts-pipeline-to-bahrain-after-aramco-attacks-sources-250013">Saudi&nbsp;Arabia</a> is set to become a significant buyer of&nbsp;refined&nbsp;products&nbsp;after&nbsp;the&nbsp;attacks&nbsp;forced it to shut down more than half of its crude oil output and some of its gas, consultancy Energy Aspects said in a note on Sunday.

The&nbsp;attacks&nbsp;may have curtailed as much as 1 million barrels per day (bpd) of&nbsp;Aramco's refining capacity, Energy Aspects said, although this could not be confirmed and it was not clear to which&nbsp;Saudi&nbsp;Aramco&nbsp;refineries it was referring.

<a href="https://www.wionews.com/business-economy/international-oil-prices-surge-nearly-20-after-attack-on-saudi-oil-facilities-249978">Aramco&nbsp;Trading&nbsp;Company</a> (ATC), the&nbsp;trading&nbsp;arm&nbsp;of&nbsp;Saudi&nbsp;Aramco, is making enquiries to buy diesel for the prompt delivery, two of the trade&nbsp;sources&nbsp;said.

Saudi&nbsp;Arabia is typically a net exporter of diesel.

"They are looking (for oil&nbsp;products) since they are trimming runs at some of the refineries," one source said, declining to be named as he was not authorised to speak to media.

He said the total volumes sought by&nbsp;Saudi&nbsp;Arabia were not immediately clear, but that the prompt derivatives market was&nbsp;trading&nbsp;higher on Monday.

ATC is seeking 10 parts-per-million (ppm) sulphur diesel through private discussions, asking for "anything prompt," a second trader said.

It is also seeking 500ppm sulphur gasoil for delivery into the Arabian Gulf, most likely for domestic use, said a third source, in the refining industry.

Brent crude futures, the international benchmark, rose by as much as 19.5 per cent&nbsp;to $71.95 per barrel during early Asian&nbsp;trading&nbsp;hours.

A fourth&nbsp;trading&nbsp;source said&nbsp;Aramco&nbsp;Trading&nbsp;may have bought two ultra-low sulphur diesel cargoes from India and the Middle East, although this could not be confirmed immediately and further details were not available.

"The issue for&nbsp;Aramco&nbsp;is how they can meet their huge commitments to deliver&nbsp;products&nbsp;in September and October," another diesel trader said.

The trader, who is expecting a delivery of a&nbsp;Saudi&nbsp;diesel cargo at the end of the month, said they have not yet heard any notifications of changes from&nbsp;Aramco.

An ATC official declined to comment on the matter.

"Tightness in ultra-low-sulfur diesel will be magnified especially since the new&nbsp;Saudi&nbsp;export refineries produce 40 to 45 per cent&nbsp;low sulfur diesel," Gary Ross, founder of Black Gold Investors, told Reuters.

Saudi Aramco's trading arm is looking for oil products for prompt delivery after Saturday's attacks on Saudi oil facilities, several trade sources said this week.

Saudi Aramco's trading arm is looking for oil products for prompt delivery after Saturday's attacks on Saudi oil facilities, several trade sources said this week. Saudi Arabia is set to become a significant buyer of refined products after the attacks forced it to shut down more than half of its crude oil output and some of its gas, consultancy Energy Aspects said in a note on Sunday. The attacks may have curtailed as much as 1 million barrels per day (bpd) of Aramco's refining capacity, Energy Aspects said, although this could not be confirmed and it was not clear to which Saudi Aramco refineries it was referring. Aramco Trading Company (ATC), the trading arm of Saudi Aramco, is making enquiries to buy diesel for the prompt delivery, two of the trade sources said. Saudi Arabia is typically a net exporter of diesel. "They are looking (for oil products) since they are trimming runs at some of the refineries," one source said, declining to be named as he was not authorised to speak to media. He said the total volumes sought by Saudi Arabia were not immediately clear, but that the prompt derivatives market was trading higher on Monday. ATC is seeking 10 parts-per-million (ppm) sulphur diesel through private discussions, asking for "anything prompt," a second trader said. It is also seeking 500ppm sulphur gasoil for delivery into the Arabian Gulf, most likely for domestic use, said a third source, in the refining industry. Brent crude futures, the international benchmark, rose by as much as 19.5 per cent to $71.95 per barrel during early Asian trading hours. A fourth trading source said Aramco Trading may have bought two ultra-low sulphur diesel cargoes from India and the Middle East, although this could not be confirmed immediately and further details were not available. "The issue for Aramco is how they can meet their huge commitments to deliver products in September and October," another diesel trader said. The trader, who is expecting a delivery of a Saudi diesel cargo at the end of the month, said they have not yet heard any notifications of changes from Aramco. An ATC official declined to comment on the matter. "Tightness in ultra-low-sulfur diesel will be magnified especially since the new Saudi export refineries produce 40 to 45 per cent low sulfur diesel," Gary Ross, founder of Black Gold Investors, told Reuters.

Saudi Aramco trading arm wants refined products after attacks: sources

The weapons used to strike <a href="https://www.wionews.com/world/dont-need-middle-east-oil-gas-but-will-help-our-allies-says-trump-after-attacks-on-saudi-arabias-aramco-250005">Saudi oil facilities</a> were Iranian-made, the Riyadh-led coalition said Monday, heightening fears of regional conflict after the US hinted at a military response to the assault.

The weekend strikes on Abqaiq -&nbsp;the world's largest oil processing facility -&nbsp;and the <a href="https://www.wionews.com/world/saudi-arabia-shuts-pipeline-to-bahrain-after-aramco-attacks-sources-250013">Khurais oil field</a> in eastern Saudi Arabia have roiled global energy markets with prices spiking Monday to record highs.

Yemen's Iran-aligned Huthi rebels claimed responsibility for the strikes but Washington has squarely blamed Iran, with President Donald Trump saying the US is "locked and loaded" to respond.

Saudi's energy infrastructure has been hit before, but this strike was of a different order, abruptly halting 5.7 million barrels per day (bpd) or about six per cent of the world's oil supply.

The Saudi-led coalition, which is bogged down in a five-year war in neighbouring Yemen, reiterated the assessment that the Huthis were not behind it, pointing the finger at Iran for providing the weapons.

Russia urged "all countries to avoid hasty steps or conclusions that could exacerbate the situation" while the European Union stressed all sides should show "maximum restraint".

China also called on the US and Iran to "exercise restraint... in the absence of a conclusive investigation or verdict."

"All indications are that weapons used in both attacks came from Iran," coalition spokesman Turki al-Maliki told reporters in Riyadh, adding they were now probing "from where they were fired".

"This strike didn't come from Yemen territory as the Huthi militia are pretending," Maliki said, adding an investigation had been opened.

He labelled the Huthis "a tool in the hands of the Iranian Revolutionary Guards and the terrorist regime of Iran".

The rebels said they fired 10 drones at the Saudi infrastructure, but the New York Times reported that US officials had satellite images showing the attacks -- possibly with drones and cruise missiles -- had come from the north or northwest.&nbsp;

It&nbsp;indicated they were sourced in the northern Persian Gulf, Iran or Iraq, rather than Yemen.

The assault on the heart of Saudi Arabia's oil industry, which engulfed the facilities in flames, has been condemned by Washington as an "unprecedented attack on the world's energy supply".

Oil prices saw their biggest daily gain since the 1991 Gulf War on Monday after the attacks halved output in the world's top crude exporter, fuelling fresh geopolitical and growth fears.

Europe's benchmark Brent crude surged by 20 percent and US counterpart WTI by 15 percent as commodities trading got underway.

Both contracts later came off their peaks, but were still up more than 10 percent on the day by the mid-afternoon in Europe.

US Energy Secretary Rick Perry insisted world oil markets still had sizeable reserves saying the market has "a fairly substantial amount of oil out there available".&nbsp;

Saudi Energy Minister Prince Abdulaziz bin Salman on Sunday said the kingdom would use its vast inventories to partially compensate for the lost production, and the US also authorised the release of its reserves.

"Growing tensions in the Middle East are another headwind for the global economy in already uncertain times, and a full-blown conflict could trigger another leg in the global downturn," said Jennifer McKeown, head of Global Economics at Capital Economics.

With the Huthis threatening further attacks, analyst Oanda senior market analyst Craig Erlam noted Saturday's events had "highlighted the vulnerability of security at these facilities to drone attacks".

The kingdom also has a spare capacity of around two million bpd that it can draw on at times of crisis.

But a prolonged production delay could potentially see prices climb to "triple digits", warned Saudi economic consultant Sulaiman al-Assaf.&nbsp;

The attack is a major test for Saudi Arabia as it could dampen investor confidence in Aramco's upcoming two-stage initial public offering (IPO), a mammoth listing that the government hopes will generate up to $100 billion.

Saudi authorities are considering whether to delay an IPO for the oil giant, people with knowledge of the matter said.

"They're in the process of assessing the damage. It's a possibility but it's still very early," said one of the sources who spoke on condition of anonymity.

The IPO, earlier scheduled for 2018, has already been mired in delays as it reportedly struggled to reach a $2 trillion valuation desired by Saudi rulers.

Saudi authorities have sought to calm jittery markets, with the Energy Intelligence specialist newsletter citing industry sources as saying Aramco was "close to restoring as much as 40 percent" of the lost production, or about 2.3 million barrels per day (bdp).

The Wall Street Journal cited people familiar with the damage estimates as saying the targeted facilities would take weeks to return to full production capacity.

The real extent of the damage at the facilities however remains unclear.

All eyes are on official word from the Saudis on the situation, which could offer reassurance to world markets. 
&nbsp;

The weapons used to strike Saudi oil facilities were Iranian-made, the Riyadh-led coalition said Monday, heightening fears of regional conflict after the US hinted at a military response to the assault.

The weapons used to strike Saudi oil facilities were Iranian-made, the Riyadh-led coalition said Monday, heightening fears of regional conflict after the US hinted at a military response to the assault. The weekend strikes on Abqaiq - the world's largest oil processing facility - and the Khurais oil field in eastern Saudi Arabia have roiled global energy markets with prices spiking Monday to record highs. Yemen's Iran-aligned Huthi rebels claimed responsibility for the strikes but Washington has squarely blamed Iran, with President Donald Trump saying the US is "locked and loaded" to respond. Saudi's energy infrastructure has been hit before, but this strike was of a different order, abruptly halting 5.7 million barrels per day (bpd) or about six per cent of the world's oil supply. The Saudi-led coalition, which is bogged down in a five-year war in neighbouring Yemen, reiterated the assessment that the Huthis were not behind it, pointing the finger at Iran for providing the weapons. Russia urged "all countries to avoid hasty steps or conclusions that could exacerbate the situation" while the European Union stressed all sides should show "maximum restraint". China also called on the US and Iran to "exercise restraint... in the absence of a conclusive investigation or verdict." "All indications are that weapons used in both attacks came from Iran," coalition spokesman Turki al-Maliki told reporters in Riyadh, adding they were now probing "from where they were fired". "This strike didn't come from Yemen territory as the Huthi militia are pretending," Maliki said, adding an investigation had been opened. He labelled the Huthis "a tool in the hands of the Iranian Revolutionary Guards and the terrorist regime of Iran". The rebels said they fired 10 drones at the Saudi infrastructure, but the New York Times reported that US officials had satellite images showing the attacks -- possibly with drones and cruise missiles -- had come from the north or northwest. It indicated they were sourced in the northern Persian Gulf, Iran or Iraq, rather than Yemen. The assault on the heart of Saudi Arabia's oil industry, which engulfed the facilities in flames, has been condemned by Washington as an "unprecedented attack on the world's energy supply". Oil prices saw their biggest daily gain since the 1991 Gulf War on Monday after the attacks halved output in the world's top crude exporter, fuelling fresh geopolitical and growth fears. Europe's benchmark Brent crude surged by 20 percent and US counterpart WTI by 15 percent as commodities trading got underway. Both contracts later came off their peaks, but were still up more than 10 percent on the day by the mid-afternoon in Europe. US Energy Secretary Rick Perry insisted world oil markets still had sizeable reserves saying the market has "a fairly substantial amount of oil out there available". Saudi Energy Minister Prince Abdulaziz bin Salman on Sunday said the kingdom would use its vast inventories to partially compensate for the lost production, and the US also authorised the release of its reserves. "Growing tensions in the Middle East are another headwind for the global economy in already uncertain times, and a full-blown conflict could trigger another leg in the global downturn," said Jennifer McKeown, head of Global Economics at Capital Economics. With the Huthis threatening further attacks, analyst Oanda senior market analyst Craig Erlam noted Saturday's events had "highlighted the vulnerability of security at these facilities to drone attacks". The kingdom also has a spare capacity of around two million bpd that it can draw on at times of crisis. But a prolonged production delay could potentially see prices climb to "triple digits", warned Saudi economic consultant Sulaiman al-Assaf. The attack is a major test for Saudi Arabia as it could dampen investor confidence in Aramco's upcoming two-stage initial public offering (IPO), a mammoth listing that the government hopes will generate up to $100 billion. Saudi authorities are considering whether to delay an IPO for the oil giant, people with knowledge of the matter said. "They're in the process of assessing the damage. It's a possibility but it's still very early," said one of the sources who spoke on condition of anonymity. The IPO, earlier scheduled for 2018, has already been mired in delays as it reportedly struggled to reach a $2 trillion valuation desired by Saudi rulers. Saudi authorities have sought to calm jittery markets, with the Energy Intelligence specialist newsletter citing industry sources as saying Aramco was "close to restoring as much as 40 percent" of the lost production, or about 2.3 million barrels per day (bdp). The Wall Street Journal cited people familiar with the damage estimates as saying the targeted facilities would take weeks to return to full production capacity. The real extent of the damage at the facilities however remains unclear. All eyes are on official word from the Saudis on the situation, which could offer reassurance to world markets.

Weapons used in Saudi oil attacks came from Iran: Saudi coalition

Yemen's Houthi movement said on Monday that Saudi Aramco's oil processing plants were still a target and could be attacked at "any moment", warning foreigners to leave the area. Watch this video to know more.

WION Dispatch: Houthis warns Saudi to stop its aggression on Yemen

Oil prices surged nearly 20 per cent at one point on Monday, with <a href="https://www.wionews.com/business-economy/dollar-falls-oil-exporter-currencies-rise-after-saudi-attacks-yen-firms-249915">Brent crude posting</a> its biggest intraday gain since the Gulf War in 1991, after an attack on Saudi Arabian oil facilities at the weekend halved the kingdom's production.

Prices came off their peaks after US&nbsp;President Donald Trump authorised the use of his country's <a href="https://www.wionews.com/world/oil-prices-soar-more-than-10-after-saudi-plant-attacks-249877">emergency stockpile</a> to ensure stable supply.

Brent crude futures, the international benchmark, rose as much as 19.5 per cent&nbsp;to $71.95 per barrel, the biggest intraday jump since January,&nbsp;14, 1991. By 0940 GMT, the contract was at $65.77, up $5.55 or 8.4 per cent.

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US&nbsp;West Texas Intermediate (WTI) futures climbed as much as 15.5 per cent&nbsp;to $63.34, the biggest intraday percentage gain since June 22, 1998. The contract was later at $59.54, up $4.69 or 7.88 per cent.

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Saudi Arabia is the world's biggest oil exporter and the attack on state-owned producer Saudi Aramco's crude-processing facilities at Abqaiq and Khurais has cut output by 5.7 million barrels per day. The company has not given a timeline for the resumption of full output.

Two sources briefed on Aramco's operations said a full return to normal production volumes "may take months".

"To take out over 5 per cent&nbsp;of global supply in a single strike - a volume exceeding cumulative non-OPEC supply growth over 2014-2018 - is highly worrying," UBS analysts said in a note.

"The departure of US&nbsp;National Security Advisor John Bolton last week was interpreted by many as a reduction in political risk - this event may be significant magnitudes more consequential."

Trump said he had approved the release of oil from the US&nbsp;Strategic Petroleum Reserve if needed in a quantity to be determined.

Trump also said the United States was "locked and loaded" for a potential response to the attack.

Major importers of Saudi crude, such as India, China and Indonesia, will be the most vulnerable to the supply disruption.

Saudi oil exports will continue as normal this week as the kingdom taps into stocks from its large storage facilities, an industry source briefed on the developments told Reuters.

South Korea said it would consider releasing oil from its strategic reserves if circumstances worsened in the wake of Saturday's attacks.

The attack on plants in the heartland of Saudi Arabia's oil industry, including the world's biggest petroleum-processing facility at Abqaiq, came from the direction of Iran, and cruise missiles may have been used, a US&nbsp;official said.

"Growing fears of a supply squeeze and heightened geopolitical tensions in the Middle East will add a risk premium for oil prices," said Benjamin Lu, analyst at Singapore-based brokerage Phillip Futures.

Saudi Arabia is set to become a significant buyer of refined products after the attacks, consultancy Energy Aspects said.

Saudi Aramco is likely to buy significant quantities of gasoline, diesel and possibly fuel oil while cutting liquefied petroleum gas exports.

US&nbsp;gasoline futures rose as much as 12.9 per cent, while US&nbsp;heating oil futures gained 10.8 per cent. China's Shanghai crude futures rose to their trading limit gaining 8 per cent at the open.

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Oil prices surged nearly 20 per cent at one point on Monday, with Brent crude posting its biggest intraday gain since the Gulf War in 1991, after an attack on Saudi Arabian oil facilities at the weekend halved the kingdom's production.

Oil prices surged nearly 20 per cent at one point on Monday, with Brent crude posting its biggest intraday gain since the Gulf War in 1991, after an attack on Saudi Arabian oil facilities at the weekend halved the kingdom's production. Prices came off their peaks after US President Donald Trump authorised the use of his country's emergency stockpile to ensure stable supply. Brent crude futures, the international benchmark, rose as much as 19.5 per cent to $71.95 per barrel, the biggest intraday jump since January, 14, 1991. By 0940 GMT, the contract was at $65.77, up $5.55 or 8.4 per cent. Watch Video: US West Texas Intermediate (WTI) futures climbed as much as 15.5 per cent to $63.34, the biggest intraday percentage gain since June 22, 1998. The contract was later at $59.54, up $4.69 or 7.88 per cent. Saudi Arabia is the world's biggest oil exporter and the attack on state-owned producer Saudi Aramco's crude-processing facilities at Abqaiq and Khurais has cut output by 5.7 million barrels per day. The company has not given a timeline for the resumption of full output. Two sources briefed on Aramco's operations said a full return to normal production volumes "may take months". "To take out over 5 per cent of global supply in a single strike - a volume exceeding cumulative non-OPEC supply growth over 2014-2018 - is highly worrying," UBS analysts said in a note. "The departure of US National Security Advisor John Bolton last week was interpreted by many as a reduction in political risk - this event may be significant magnitudes more consequential." Trump said he had approved the release of oil from the US Strategic Petroleum Reserve if needed in a quantity to be determined. Trump also said the United States was "locked and loaded" for a potential response to the attack. Major importers of Saudi crude, such as India, China and Indonesia, will be the most vulnerable to the supply disruption. Saudi oil exports will continue as normal this week as the kingdom taps into stocks from its large storage facilities, an industry source briefed on the developments told Reuters. South Korea said it would consider releasing oil from its strategic reserves if circumstances worsened in the wake of Saturday's attacks. The attack on plants in the heartland of Saudi Arabia's oil industry, including the world's biggest petroleum-processing facility at Abqaiq, came from the direction of Iran, and cruise missiles may have been used, a US official said. "Growing fears of a supply squeeze and heightened geopolitical tensions in the Middle East will add a risk premium for oil prices," said Benjamin Lu, analyst at Singapore-based brokerage Phillip Futures. Saudi Arabia is set to become a significant buyer of refined products after the attacks, consultancy Energy Aspects said. Saudi Aramco is likely to buy significant quantities of gasoline, diesel and possibly fuel oil while cutting liquefied petroleum gas exports. US gasoline futures rose as much as 12.9 per cent, while US heating oil futures gained 10.8 per cent. China's Shanghai crude futures rose to their trading limit gaining 8 per cent at the open.

International oil prices surge nearly 20% after attack on Saudi oil facilities

Yemen's Houthi movement said on Monday that Saudi Aramco's oil processing plants were still a target and could be attacked at "any moment", warning foreigners to leave the area.

Yemen's Houthis say Saudi Aramco's oil processing plants still a target

<a href="https://www.wionews.com/videos/saudi-arabia-says-drones-attacked-oil-facilities-249652">Saudi Arabia</a> has temporarily halted production at two <a href="https://www.wionews.com/videos/drone-attack-at-saudi-arabias-oil-refinery-massive-fire-broke-out-249565">Aramco oil facilities </a>that were attacked by Yemeni rebels, interrupting about half of the company's total output, the energy minister said Saturday.

The attacks "resulted in a temporary suspension of production at Abqaiq and Khurais plants," Prince Abdulaziz bin Salman, the energy minister said in a statement carried by the official Saudi Press Agency.

It led to the interruption of about 50 per cent of total production, he added.

"These attacks resulted in production suspension of 5.7 million barrels of crude oil per day," the state-owned Aramco said in a separate statement.

Aramco CEO Amin Nasser said work was underway to restore production and a progress update would be provided in the next two days.

The Huthi rebel drone attacks on Abqaiq and Khurais, two key Aramco facilities in eastern Saudi Arabia, are the latest in a series of raids on the kingdom's oil installations in recent months.

Nasser said "no injuries" were reported in the attacks.

The Iran-linked Huthi rebels said they launched "a large-scale operation involving 10 drones" on the facilities, the group's Al-Masirah television reported.

US Secretary of State Mike Pompeo blamed Iran for the strikes.

"Iran has now launched an unprecedented attack on the world's energy supply," Pompeo said.

Saudi Arabia, a key ally of Washington, has repeatedly accused Iran of supplying arms to the rebels. Tehran denies the charge.

Growing rebel attacks underscore how Saudi infrastructure, including oil installations, are increasingly vulnerable to the Huthis' steadily advancing weaponry -- from ballistic missiles to unmanned drones.

Saudi Arabia has temporarily halted production at two Aramco oil facilities that were attacked by Yemeni rebels, interrupting about half of the company's total output, the energy minister said Saturday.

Saudi Arabia has temporarily halted production at two Aramco oil facilities that were attacked by Yemeni rebels, interrupting about half of the company's total output, the energy minister said Saturday. The attacks "resulted in a temporary suspension of production at Abqaiq and Khurais plants," Prince Abdulaziz bin Salman, the energy minister said in a statement carried by the official Saudi Press Agency. It led to the interruption of about 50 per cent of total production, he added. "These attacks resulted in production suspension of 5.7 million barrels of crude oil per day," the state-owned Aramco said in a separate statement. Aramco CEO Amin Nasser said work was underway to restore production and a progress update would be provided in the next two days. The Huthi rebel drone attacks on Abqaiq and Khurais, two key Aramco facilities in eastern Saudi Arabia, are the latest in a series of raids on the kingdom's oil installations in recent months. Nasser said "no injuries" were reported in the attacks. The Iran-linked Huthi rebels said they launched "a large-scale operation involving 10 drones" on the facilities, the group's Al-Masirah television reported. US Secretary of State Mike Pompeo blamed Iran for the strikes. "Iran has now launched an unprecedented attack on the world's energy supply," Pompeo said. Saudi Arabia, a key ally of Washington, has repeatedly accused Iran of supplying arms to the rebels. Tehran denies the charge. Growing rebel attacks underscore how Saudi infrastructure, including oil installations, are increasingly vulnerable to the Huthis' steadily advancing weaponry -- from ballistic missiles to unmanned drones.

Saudi halts production at attacked oil plants: Minister

Iran's Foreign Minister Mohammed Javad Zarif said on Sunday that the United States and its allies were "stuck in Yemen" and that blaming Tehran "won't end the disaster".

 
"Having failed at "max pressure", @SecPompeo's turning to "max deceit". The US &amp; its clients are stuck in Yemen because of the illusion that weapon superiority will lead to military victory. Blaming Iran won't end disaster," Zarif said on Twitter.

Javad Zarif Tweet:

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<blockquote class="twitter-tweet" data-lang="en">
Having failed at "max pressure", <a href="https://twitter.com/SecPompeo?ref_src=twsrc%5Etfw">@SecPompeo</a>'s turning to "max deceit" 
 
US &amp; its clients are stuck in Yemen because of illusion that weapon superiority will lead to military victory. 
 
Blaming Iran won't end disaster. Accepting our April '15 proposal to end war &amp; begin talks may.
— Javad Zarif (@JZarif) <a href="https://twitter.com/JZarif/status/1173162202926333952?ref_src=twsrc%5Etfw">September 15, 2019</a></blockquote>
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The US&nbsp;Secretary of State Mike Pompeo on Saturday blamed Iran for the drone attacks which hit two of Saudi Arabia's Aramco oil installations and were claimed by Yemen's Iran-aligned Houthi group, saying that "Iran has now launched an unprecedented attack on the world's energy supply."

Iran's Foreign Minister Mohammed Javad Zarif said on Sunday that the United States and its allies were "stuck in Yemen" and that blaming Tehran "won't end the disaster".

Iran's Foreign Minister Mohammed Javad Zarif said on Sunday that the United States and its allies were "stuck in Yemen" and that blaming Tehran "won't end the disaster". "Having failed at "max pressure", @SecPompeo's turning to "max deceit". The US & its clients are stuck in Yemen because of the illusion that weapon superiority will lead to military victory. Blaming Iran won't end disaster," Zarif said on Twitter. Javad Zarif Tweet: Having failed at "max pressure", @SecPompeo's turning to "max deceit" US & its clients are stuck in Yemen because of illusion that weapon superiority will lead to military victory. Blaming Iran won't end disaster. Accepting our April '15 proposal to end war & begin talks may. — Javad Zarif (@JZarif) September 15, 2019 × The US Secretary of State Mike Pompeo on Saturday blamed Iran for the drone attacks which hit two of Saudi Arabia's Aramco oil installations and were claimed by Yemen's Iran-aligned Houthi group, saying that "Iran has now launched an unprecedented attack on the world's energy supply."

Iran Foreign Minister Zarif says the US, allies are 'stuck in Yemen'

Saudi authorities controlled a fire at an Aramco factory in Abqaiq, Al-Arabiya TV reported early on Saturday (September 14).

Video obtained by Reuters showed the fire engulfing a multiple sections of the refinery.

The videographer who declined to be identified told Reuters in a message that he was woken up by sounds coming from the refinery and started filming the flames and smoke at 4:15am&nbsp;(0115 GMT).

"Everyone was horrified to hear sound of a bomb exploding constantly," he said.

Abqaiq, about 60 km (37 miles) southwest of Dhahran in Saudi Arabia's Eastern Province, contains the world's largest oil processing plant. Most Saudi oil exported from the Gulf is processed there.

The report from Al-Arabiya TV did not give further details, said Saudi authorities later will issue a statement on the fire.

Saudi authorities controlled a fire at an Aramco factory in Abqaiq, Al-Arabiya TV reported early on Saturday (September 14). Video obtained by Reuters showed the fire engulfing a multiple sections of the refinery.

Saudi authorities controlled a fire at an Aramco factory in Abqaiq, Al-Arabiya TV reported early on Saturday (September 14). Video obtained by Reuters showed the fire engulfing a multiple sections of the refinery. The videographer who declined to be identified told Reuters in a message that he was woken up by sounds coming from the refinery and started filming the flames and smoke at 4:15am (0115 GMT). "Everyone was horrified to hear sound of a bomb exploding constantly," he said. Abqaiq, about 60 km (37 miles) southwest of Dhahran in Saudi Arabia's Eastern Province, contains the world's largest oil processing plant. Most Saudi oil exported from the Gulf is processed there. The report from Al-Arabiya TV did not give further details, said Saudi authorities later will issue a statement on the fire.

Flames and smoke rise over Aramco refinery in Saudi Arabia

Drone attacks sparked fires at two Saudi Aramco oil facilities on Saturday, the interior ministry said, the latest such assault claimed by Yemeni rebels as the energy giant prepares for a much-anticipated stock listing.

Drone attacks sparked fires at two Saudi Aramco oil facilities on Saturday, the interior ministry said, the latest such assault claimed by Yemeni rebels as the energy giant prepares for a much-anticipated stock listing. Huge palls of smoke rose into the sky after the pre-dawn attacks on Abqaiq and Khurais, two major Aramco facilities in eastern Saudi Arabia, which follow a spike in regional tensions with Iran. The attacks highlight how the increasingly advanced weaponry of the Iran-linked Huthi rebels -- from ballistic missiles to unmanned drones -- poses a serious threat to oil installations in Saudi Arabia, the world's top crude exporter. "At 4:00 am (0100 GMT) the industrial security teams of Aramco started dealing with fires at two of its facilities in Abqaiq and Khurais as a result of... drones," the interior ministry said in a statement carried by the official Saudi Press Agency. "The two fires have been controlled." The statement added that an investigation had been launched after the attack in the kingdom's Eastern Province, but did not specify the source of the drones. It also did not say if there were any casualties or whether operations at the two facilities had been affected. The full extent of the damage was not immediately clear as reporters were not allowed near the plants where Saudi authorities appeared to have beefed up security. In recent months, the Huthi rebels have carried out a spate of cross-border missile and drone attacks targeting Saudi air bases and other facilities in what they say is retaliation for a long-running Saudi-led bombing campaign on rebel-held areas in Yemen. The rebels launched "a large-scale operation involving 10 drones that targeted refineries in Abqaiq and Khurais in eastern Saudi Arabia", the group's Al-Masirah television reported. Last month, an attack claimed by Yemen's Huthi rebels sparked a fire at Aramco's Shaybah natural gas liquefaction facility -- close to the Emirati border -- but no casualties were reported by the company. Rebel drones also targeted two oil pumping stations on Saudi Arabia's key east-west pipeline in May, shutting it down for several days. Rebel threat The growing attacks underscore how Saudi infrastructure, including oil installations, are increasingly vulnerable to rebel attacks four years after a Saudi-led coalition launched a military intervention in Yemen. The Abqaiq facility, 60 kilometres (37 miles) southwest of Aramco's Dhahran headquarters, is home to the company's largest oil processing plant. It has been targeted by militants in the past. In an attack claimed by Al-Qaeda in February 2006, suicide bombers with explosive-laden vehicles attempted to penetrate the processing plant, killing two security guards. The two bombers also died in the attack, which failed to breach the compound, authorities reported at the time. In 2014, a Saudi court sentenced a man to death for links to the 2006 attack. Two other Saudis were jailed for 33 and 27 years respectively, state media reported. Khurais, 250 kilometres from Dhahran, hosts a major Aramco oil field. Tensions in the Gulf have soared since May, with US President Donald Trump calling off air strikes against Iran at the last minute in June after it downed a US drone. The United States and Saudi Arabia have also blamed Iran for multiple attacks on tankers in the Gulf. The latest attacks come as Saudi Arabia, the world's top crude exporter, accelerates preparations for a much-anticipated initial public offering of Aramco. The mammoth IPO forms the cornerstone of a reform programme envisaged by the kingdom's de facto ruler Crown Prince Mohammed bin Salman, a son of King Salman, to wean the Saudi economy off its reliance on oil. Aramco is ready for a two-stage stock market debut including an international listing "very soon", its CEO Amin Nasser told reporters on Tuesday.

Yemeni rebel drones spark fires at two Saudi Aramco oil facilities

Saudi Arabia on Monday named the head of its sovereign wealth fund as chairman of oil giant Aramco, replacing Energy Minister Khalid al-Falih as the state-owned company prepares for a much-anticipated initial public offering (IPO).

"I congratulate... Yasir al-Rumayyan, governor of the Public Investment Fund, on his appointment as chairman of the board of directors of Saudi Aramco, which is an important step to prepare the company for the public offering," Falih said on Twitter.

Rumayyan, already an Aramco board member, is the head of the vast Saudi sovereign wealth fund that is spearheading an ambitious plan to diversify the kingdom's oil-reliant economy.

The news comes after Falih, who has long headed both Aramco and the energy ministry, has seen his portfolio shrink as the kingdom reels from low oil prices.

Saudi Arabia on Friday announced the creation of a new ministry of industry and mineral resources, separating it from the energy ministry as it steps up efforts to boost non-oil revenue.

"All this shows that in Saudi Arabia there has been some dissatisfaction at the highest levels on how things have been going," Olivier Jakob, from the consultancy Petromatrix, told Bloomberg News.

"Falih has not really fully delivered on oil prices. There's speculation that prices and the IPO are linked and they need higher prices to get the valuation they want for the IPO."

Aramco has said it plans to float around five per cent of the state-owned company in 2020 or 2021, in what could potentially be the world's biggest stock sale.

It aims to raise up to $100 billion based on a $2 trillion valuation of the company, but amid low oil prices, investors have debated whether Aramco is really worth that much.

Failure to reach a $2 trillion valuation as desired by Saudi rulers is widely considered the reason the IPO, earlier scheduled for 2018, has been delayed.

Earlier this month, Aramco said its first-half net income for 2019 slipped nearly 12 per cent to $46.9 billion on lower crude prices.

It was the first time the company has published half-year financial results and comes after Aramco opened its secretive accounts for the first time in April, revealing itself to be the world's most profitable company.

The planned IPO forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil.

Saudi Aramco has not announced where the listing will be held, but London, New York and Hong Kong have all vied for a slice of the much-touted IPO.

The oil giant is considering a two-stage IPO, with a domestic debut and a subsequent international listing possibly in Tokyo, the Wall Street Journal reported last week.

Saudi Arabia on Monday named the head of its sovereign wealth fund as chairman of oil giant Aramco, replacing Energy Minister Khalid al-Falih as the state-owned company prepares for a much-anticipated initial public offering (IPO).

Saudi Arabia on Monday named the head of its sovereign wealth fund as chairman of oil giant Aramco, replacing Energy Minister Khalid al-Falih as the state-owned company prepares for a much-anticipated initial public offering (IPO). "I congratulate... Yasir al-Rumayyan, governor of the Public Investment Fund, on his appointment as chairman of the board of directors of Saudi Aramco, which is an important step to prepare the company for the public offering," Falih said on Twitter. Rumayyan, already an Aramco board member, is the head of the vast Saudi sovereign wealth fund that is spearheading an ambitious plan to diversify the kingdom's oil-reliant economy. The news comes after Falih, who has long headed both Aramco and the energy ministry, has seen his portfolio shrink as the kingdom reels from low oil prices. Saudi Arabia on Friday announced the creation of a new ministry of industry and mineral resources, separating it from the energy ministry as it steps up efforts to boost non-oil revenue. "All this shows that in Saudi Arabia there has been some dissatisfaction at the highest levels on how things have been going," Olivier Jakob, from the consultancy Petromatrix, told Bloomberg News. "Falih has not really fully delivered on oil prices. There's speculation that prices and the IPO are linked and they need higher prices to get the valuation they want for the IPO." Aramco has said it plans to float around five per cent of the state-owned company in 2020 or 2021, in what could potentially be the world's biggest stock sale. It aims to raise up to $100 billion based on a $2 trillion valuation of the company, but amid low oil prices, investors have debated whether Aramco is really worth that much. Failure to reach a $2 trillion valuation as desired by Saudi rulers is widely considered the reason the IPO, earlier scheduled for 2018, has been delayed. Earlier this month, Aramco said its first-half net income for 2019 slipped nearly 12 per cent to $46.9 billion on lower crude prices. It was the first time the company has published half-year financial results and comes after Aramco opened its secretive accounts for the first time in April, revealing itself to be the world's most profitable company. The planned IPO forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil. Saudi Aramco has not announced where the listing will be held, but London, New York and Hong Kong have all vied for a slice of the much-touted IPO. The oil giant is considering a two-stage IPO, with a domestic debut and a subsequent international listing possibly in Tokyo, the Wall Street Journal reported last week.

Saudi Arabia replaces Aramco chairman ahead of potential IPO

&nbsp;India's&nbsp;Reliance&nbsp;Industries Ltd is set to&nbsp;sell&nbsp;a&nbsp;20%&nbsp;stake&nbsp;in its&nbsp;oil&nbsp;to&nbsp;chemicals&nbsp;business&nbsp;to&nbsp;Saudi&nbsp;Aramco&nbsp;in one of the largest foreign investments in the country, Reliance&nbsp;Chairman Mukesh Ambani said on Monday.

"(This is) the biggest foreign investment in the history of&nbsp;Reliance," Ambani said at the company's annual general meeting in India's financial capital Mumbai.

"It is also amongst the largest foreign investments ever in India."

The deal valued the&nbsp;business&nbsp;at $75 billion including debt, he said.

Saudi&nbsp;Aramco, the world's biggest&nbsp;oil&nbsp;producer, has been in talks with&nbsp;Reliance&nbsp;on the&nbsp;stake&nbsp;sale as it plans to secure new markets for its crude.

Saudi&nbsp;Aramco&nbsp;will also supply 500,000 barrels a day of crude&nbsp;oil&nbsp;on a long-term basis to RIL's Jamnagar refinery, Ambani said.

"This signifies perfect synergy between the world's largest&nbsp;oil&nbsp;producer and the world's largest integrated refinery and petrochemicals&nbsp;complex," he added.

The partnership will cover all of&nbsp;Reliance's refining and petrochemical assets, including its 51%&nbsp;stake&nbsp;in the petroleum retail joint venture, he said.

Last week,&nbsp;Reliance&nbsp;announced that it was forming a fuel retailing joint venture with global&nbsp;oil&nbsp;major BP in which&nbsp;Reliance&nbsp;would own a 51%&nbsp;stake.

India's Reliance Industries Ltd is set to sell a 20% stake in its oil to chemicals business to Saudi Aramco in one of the largest foreign investments in the country, Reliance Chairman Mukesh Ambani said on Monday.

India's Reliance Industries Ltd is set to sell a 20% stake in its oil to chemicals business to Saudi Aramco in one of the largest foreign investments in the country, Reliance Chairman Mukesh Ambani said on Monday. "(This is) the biggest foreign investment in the history of Reliance," Ambani said at the company's annual general meeting in India's financial capital Mumbai. "It is also amongst the largest foreign investments ever in India." The deal valued the business at $75 billion including debt, he said. Saudi Aramco, the world's biggest oil producer, has been in talks with Reliance on the stake sale as it plans to secure new markets for its crude. Saudi Aramco will also supply 500,000 barrels a day of crude oil on a long-term basis to RIL's Jamnagar refinery, Ambani said. "This signifies perfect synergy between the world's largest oil producer and the world's largest integrated refinery and petrochemicals complex," he added. The partnership will cover all of Reliance's refining and petrochemical assets, including its 51% stake in the petroleum retail joint venture, he said. Last week, Reliance announced that it was forming a fuel retailing joint venture with global oil major BP in which Reliance would own a 51% stake.

Reliance to sell 20% stake in oil-to-chemicals business to Saudi Aramco

Saudi Crown Prince Mohammed bin Salman cemented a $10 billion deal for a refining and petrochemical complex in China on Friday, meeting Chinese President Xi Jinping who urged joint efforts to counter extremism and terror.

The Saudi delegation, including top executives from state-owned oil company Saudi Aramco, arrived on Thursday on an Asia tour that has already seen the kingdom pledge investment of $20 billion in Pakistan and seek to make additional investments in India's refining industry.

"China is a good friend and partner to Saudi Arabia," President Xi Jinping told the crown prince in front of reporters.

"The special nature of our bilateral relationship reflects the efforts you have made," added Xi, who has made stepping up China's presence in the Middle East a key foreign policy objective, despite its traditional low-key role there.

The crown prince said Saudi Arabia's relations with China dated back "a very long time in the past".

"In the hundreds, even thousands, of years, the interactions between the sides have been friendly. Over such a long period of exchanges with China, we have never experienced any problems with China," he said.

China has had to step carefully in relations with Riyadh, since Beijing also has close ties with Saudi Arabia's regional foe, Iran.

China is also wary of criticism from Muslim countries about its camps in the heavily Muslim far western region of Xinjiang, which the government says are for de-radicalisation purposes and rights groups call internment camps.

Xi told the crown prince the two countries must strengthen international cooperation on de-radicalisation to "prevent the infiltration and spread of extremist thinking", Chinese state television said.

Saudi Arabia respected and supported China's right to protect its own security and take counter-terror and de-radicalisation steps, the crown prince told Xi, according to the same report, and was willing to increase cooperation.

Meeting the crown prince earlier on Friday, Chinese Vice Premier Han Zheng said the two countries should enhance exchanges on their experiences in de-radicalisation, China's official Xinhua news agency said in a separate report.

Chinese state media made no direct mention of Xinjiang in their stories on the crown prince's meetings.

Deals signed

Aramco agreed to form a joint venture with Chinese defence conglomerate Norinco to develop a refining and petrochemical complex in the northeastern Chinese city of Panjin, saying the project was worth more than $10 billion.

The partners would form a company called Huajin Aramco Petrochemical Co as part of a project that would include a 300,000-barrels-per-day (bpd) refinery with a 1.5-million-metric-tonnes-per-year ethylene cracker, Aramco said.

Aramco will supply up to 70 percent of the crude feedstock for the complex, which is expected to start operations in 2024.

The investments could help Saudi Arabia regain its place as the top oil exporter to China, a position Russia has held for the last three years. Saudi Aramco is set to boost market share by signing supply deals with non-state Chinese refiners.

Aramco also signed an agreement to buy a 9 percent stake in Zhejiang Petrochemical, Saudi state news agency SPA said. This formalised a previously announced plan to gain a stake in a 400,000-bpd refinery and petrochemicals complex in Zhoushan, south of Shanghai.

China sees "enormous potential" in Saudi Arabia's economy and wants more high-tech cooperation, State Councillor Wang Yi, the Chinese government's top diplomat, said on Thursday.

But China was not seeking to play politics in the Middle East, the widely read state-run tabloid, the Global Times, said in an editorial.

"China won't be a geopolitical player in the Middle East. It has no enemies and can cooperate with all countries in the region," said the paper, published by the ruling Communist Party's official People's Daily.

"China's increasing influence in the Middle East comes from pure friendly cooperation. Such a partnership will be welcomed by more countries in the Middle East."

Saudi Crown Prince Mohammed bin Salman cemented a $10 billion deal for a refining and petrochemical complex in China on Friday, meeting Chinese President Xi Jinping who urged joint efforts to counter extremism and terror.

Saudi Crown Prince Mohammed bin Salman cemented a $10 billion deal for a refining and petrochemical complex in China on Friday, meeting Chinese President Xi Jinping who urged joint efforts to counter extremism and terror. The Saudi delegation, including top executives from state-owned oil company Saudi Aramco, arrived on Thursday on an Asia tour that has already seen the kingdom pledge investment of $20 billion in Pakistan and seek to make additional investments in India's refining industry. "China is a good friend and partner to Saudi Arabia," President Xi Jinping told the crown prince in front of reporters. "The special nature of our bilateral relationship reflects the efforts you have made," added Xi, who has made stepping up China's presence in the Middle East a key foreign policy objective, despite its traditional low-key role there. The crown prince said Saudi Arabia's relations with China dated back "a very long time in the past". "In the hundreds, even thousands, of years, the interactions between the sides have been friendly. Over such a long period of exchanges with China, we have never experienced any problems with China," he said. China has had to step carefully in relations with Riyadh, since Beijing also has close ties with Saudi Arabia's regional foe, Iran. China is also wary of criticism from Muslim countries about its camps in the heavily Muslim far western region of Xinjiang, which the government says are for de-radicalisation purposes and rights groups call internment camps. Xi told the crown prince the two countries must strengthen international cooperation on de-radicalisation to "prevent the infiltration and spread of extremist thinking", Chinese state television said. Saudi Arabia respected and supported China's right to protect its own security and take counter-terror and de-radicalisation steps, the crown prince told Xi, according to the same report, and was willing to increase cooperation. Meeting the crown prince earlier on Friday, Chinese Vice Premier Han Zheng said the two countries should enhance exchanges on their experiences in de-radicalisation, China's official Xinhua news agency said in a separate report. Chinese state media made no direct mention of Xinjiang in their stories on the crown prince's meetings. Deals signed Aramco agreed to form a joint venture with Chinese defence conglomerate Norinco to develop a refining and petrochemical complex in the northeastern Chinese city of Panjin, saying the project was worth more than $10 billion. The partners would form a company called Huajin Aramco Petrochemical Co as part of a project that would include a 300,000-barrels-per-day (bpd) refinery with a 1.5-million-metric-tonnes-per-year ethylene cracker, Aramco said. Aramco will supply up to 70 percent of the crude feedstock for the complex, which is expected to start operations in 2024. The investments could help Saudi Arabia regain its place as the top oil exporter to China, a position Russia has held for the last three years. Saudi Aramco is set to boost market share by signing supply deals with non-state Chinese refiners. Aramco also signed an agreement to buy a 9 percent stake in Zhejiang Petrochemical, Saudi state news agency SPA said. This formalised a previously announced plan to gain a stake in a 400,000-bpd refinery and petrochemicals complex in Zhoushan, south of Shanghai. China sees "enormous potential" in Saudi Arabia's economy and wants more high-tech cooperation, State Councillor Wang Yi, the Chinese government's top diplomat, said on Thursday. But China was not seeking to play politics in the Middle East, the widely read state-run tabloid, the Global Times, said in an editorial. "China won't be a geopolitical player in the Middle East. It has no enemies and can cooperate with all countries in the region," said the paper, published by the ruling Communist Party's official People's Daily. "China's increasing influence in the Middle East comes from pure friendly cooperation. Such a partnership will be welcomed by more countries in the Middle East."

Saudi Arabia strikes $10 billion China deal, talks de-radicalisation with President Xi Jinping

Saudi energy giant Aramco has signed 31 agreements and memoranda of understandings worth $27.5 billion with local and international suppliers, CEO Amin Nasser said Monday.

"We signed $27.5 billion (24 billion euros) in a total of 31 commercial collaborations," Nasser said in a statement at an investment forum held in the eastern Saudi city of Dhahran.

The company did not provide details on the nature of the deals.

Last month, Aramco said it signed agreements and MOUs with scores of energy companies worth over $50 billion at a showcase investment summit boycotted by many international companies and dignitaries over the murder of journalist Jamal Khashoggi.

Insider-turned-critic Khashoggi was killed and reportedly dismembered in Saudi Arabia's Istanbul consulate on October 2 in what the kingdom said was a "rogue" operation.

More than 1,000 local and international energy service and equipment suppliers and manufacturers attended Monday's forum.

OPEC kingpin Saudi Arabia pumps over 10 million barrels per day of crude oil in addition to around 12 billion cubic feet of natural gas.

Saudi energy giant Aramco has signed 31 agreements and memoranda of understandings worth $27.5 billion with local and international suppliers, CEO Amin Nasser said Monday.

Saudi energy giant Aramco has signed 31 agreements and memoranda of understandings worth $27.5 billion with local and international suppliers, CEO Amin Nasser said Monday. "We signed $27.5 billion (24 billion euros) in a total of 31 commercial collaborations," Nasser said in a statement at an investment forum held in the eastern Saudi city of Dhahran. The company did not provide details on the nature of the deals. Last month, Aramco said it signed agreements and MOUs with scores of energy companies worth over $50 billion at a showcase investment summit boycotted by many international companies and dignitaries over the murder of journalist Jamal Khashoggi. Insider-turned-critic Khashoggi was killed and reportedly dismembered in Saudi Arabia's Istanbul consulate on October 2 in what the kingdom said was a "rogue" operation. More than 1,000 local and international energy service and equipment suppliers and manufacturers attended Monday's forum. OPEC kingpin Saudi Arabia pumps over 10 million barrels per day of crude oil in addition to around 12 billion cubic feet of natural gas.

Saudi energy giant Aramco signs deals worth $27.5 billion

Britain's markets watchdog will press ahead with a new premium listing next month aimed at attracting companies like state-controlled Saudi Aramco to London, although the rules have been "refined" following investor criticism.

The Financial Conduct Authority's initial proposal last year led to suggestions the British government had influenced the watchdog to try to secure the Saudi energy company's planned initial public offering (IPO).

Saudi Arabia is expected to float up to 5 per cent of Aramco in Riyadh and an international venue such as London or New York in what is expected to be the biggest ever IPO and would boost the reputation of its chosen listing venue.

Britain is keen to promote London's leading position as a financial centre as it leaves the European Union but some lawmakers had questioned if the original proposal for listings by sovereign-controlled firms could weaken investor protection.

The FCA said it was pressing ahead, despite criticism of its plans by major institutional investors when they were first circulated in July last year.

"The FCA thinks there is considerable benefit to investors if corporate issuers agree to meet these additional premium requirements," the watchdog said in a statement accompanying an 83-page document outlining the new rules on Friday.

The FCA said it had made some changes following feedback, including the requirement that the election of independent directors be subject to approval from independent shareholders.

There would also be a requirement for "timely disclosures" on transactions between the sovereign and the issuer.

But there will not be a requirement for a controlling shareholder agreement, and no need for an advance sponsor opinion or advance approval by independent shareholders of certain transactions with the sovereign or its associates.

"These rules mean when a sovereign controlled company lists here, investors can benefit from the protections offered by a premium listing," FCA Chief Executive Andrew Bailey said.

The watchdog said responses to its consultation were "polarised", with big investors mostly against, and all others generally supportive.

The Investment Association, which represents big shareholders, said it was disappointed by the lack of a requirement for independent votes on the changes made. It also wants a review of the new listing category after two years to check for any unintended consequences.

"We continue to oppose the inclusion of companies in this new segment in all major equity indices as this would force UK savers to invest in these companies despite the loss of valuable and hard-won investor protections," the IA's chief executive Chris Cummings said in a statement.

Nick O'Donnell, a partner at law firm Baker McKenzie, said that overall the FCA had stuck to its guns while central planks of corporate governance standards, such as being part of a FTSE index not being automatic, remain intact.

"Although the proposal has often been linked with the possible Saudi Aramco IPO, the reality is this is much wider than that. There are a lot of other companies that have been looking at this segment," O'Donnell said.

A premium listing in London would typically require a float of at least 25 per cent of a company's shares, but the new category could allow a smaller float, the FCA said.

"Some very large companies can make a credible case for a liquid market at a free float of less than 25 per cent," it said.

The FCA said it was pressing ahead, despite criticism of its plans by major institutional investors when they were first circulated in July last year

Britain's markets watchdog will press ahead with a new premium listing next month aimed at attracting companies like state-controlled Saudi Aramco to London, although the rules have been "refined" following investor criticism. The Financial Conduct Authority's initial proposal last year led to suggestions the British government had influenced the watchdog to try to secure the Saudi energy company's planned initial public offering (IPO). Saudi Arabia is expected to float up to 5 per cent of Aramco in Riyadh and an international venue such as London or New York in what is expected to be the biggest ever IPO and would boost the reputation of its chosen listing venue. Britain is keen to promote London's leading position as a financial centre as it leaves the European Union but some lawmakers had questioned if the original proposal for listings by sovereign-controlled firms could weaken investor protection. The FCA said it was pressing ahead, despite criticism of its plans by major institutional investors when they were first circulated in July last year. "The FCA thinks there is considerable benefit to investors if corporate issuers agree to meet these additional premium requirements," the watchdog said in a statement accompanying an 83-page document outlining the new rules on Friday. The FCA said it had made some changes following feedback, including the requirement that the election of independent directors be subject to approval from independent shareholders. There would also be a requirement for "timely disclosures" on transactions between the sovereign and the issuer. But there will not be a requirement for a controlling shareholder agreement, and no need for an advance sponsor opinion or advance approval by independent shareholders of certain transactions with the sovereign or its associates. "These rules mean when a sovereign controlled company lists here, investors can benefit from the protections offered by a premium listing," FCA Chief Executive Andrew Bailey said. The watchdog said responses to its consultation were "polarised", with big investors mostly against, and all others generally supportive. The Investment Association, which represents big shareholders, said it was disappointed by the lack of a requirement for independent votes on the changes made. It also wants a review of the new listing category after two years to check for any unintended consequences. "We continue to oppose the inclusion of companies in this new segment in all major equity indices as this would force UK savers to invest in these companies despite the loss of valuable and hard-won investor protections," the IA's chief executive Chris Cummings said in a statement. Nick O'Donnell, a partner at law firm Baker McKenzie, said that overall the FCA had stuck to its guns while central planks of corporate governance standards, such as being part of a FTSE index not being automatic, remain intact. "Although the proposal has often been linked with the possible Saudi Aramco IPO, the reality is this is much wider than that. There are a lot of other companies that have been looking at this segment," O'Donnell said. A premium listing in London would typically require a float of at least 25 per cent of a company's shares, but the new category could allow a smaller float, the FCA said. "Some very large companies can make a credible case for a liquid market at a free float of less than 25 per cent," it said.

Britain's FCA goes ahead with disputed 'Aramco' listing rule

Saudi Arabia&#39;s oil giant Aramco wants to enter into exclusive talks with India to buy a stake in the planned 1.2 million barrels per day (bpd) refinery on the South Asian nation&#39;s west coast, minister of state for petroleum and natural gas Dharmendra Pradhans said.

The proposed talks come as Saudi Arabia seeks to secure customers for its oil amidst a global supply glut.

With the 1.2 million bpd refinery, the world&#39;s largest, India wants to have a greater say in the global fuel trade, oil minister Dharmendra Pradhan told reporters in New Delhi.

The country&#39;s top refiner Indian Oil Corp will initially hold a 50 pe rcent stake in the project, while Hindustan Petroleum Corp and Bharat Petroleum Corp will own 25 per cent each.

The proposed talks come as Saudi Arabia seeks to secure customers for its oil amidst a global supply glut

Saudi Arabia's oil giant Aramco wants to enter into exclusive talks with India to buy a stake in the planned 1.2 million barrels per day (bpd) refinery on the South Asian nation's west coast, minister of state for petroleum and natural gas Dharmendra Pradhans said. The proposed talks come as Saudi Arabia seeks to secure customers for its oil amidst a global supply glut. With the 1.2 million bpd refinery, the world's largest, India wants to have a greater say in the global fuel trade, oil minister Dharmendra Pradhan told reporters in New Delhi. The country's top refiner Indian Oil Corp will initially hold a 50 pe rcent stake in the project, while Hindustan Petroleum Corp and Bharat Petroleum Corp will own 25 per cent each.

Saudi Arabia's Aramco seeking stake in India's oil refinery: Petroleum ministry

Saudi Arabia now owns the&nbsp;largest oil refinery in the United States, according to CNN Money.

Texas-based Port Arthur is considered to be the crown jewel of the US refinery system.

Saudi Aramco, the state-owned company, earlier co-owned the Port Arthur facility with&nbsp;Royal Dutch Shell (RDSA) called Motiva Enterprises.

But the joint venture ran into trouble due to a fractious relationship between the two owners. They decided to separate their assets in 2016.

Aramco&#39;s plan to take over the sprawling facility was first announced at the end of last year.

Aramco paid $2.2bn to Shell in the breakup deal, according to a Bloomberg report.

Shell released a statement on Monday that the takeover was complete.

Port Arthur can process 600,000 barrels of oil per day.

CNN further reported: &quot;Aramco is acquiring full ownership of 24 distribution terminals. Aramco also gets the exclusive right to sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of Texas and the majority of Florida.&quot;

Aramco buying out Port Arthur coincides with the Trump administration&#39;s aim to halt oil imports from Saudi Arabia and a push to be self-sufficient in its energy needs.

During last year&#39;s election campaign, Trump said he wanted America to be independent of&nbsp;&quot;our foes and the oil cartels&quot;.

US currently imports 1.3 million barrels of crude oil from Saudi Arabia, according to Energy Information Administration.

Aramco also believes that the IPO would be valued at $2 trillion, which would make it the highest IPO valuation in history.

The state-owned oil behemoth is hoping for the IPO&#39;s success, which has been bolstered by the Saudi government&#39;s decision to halve the company&#39;s corporate tax rates.

(WION)

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The Port Arthur facility, considered the crown jewel of US oil refineries, can produce 600,000 barrels of crude oil per day

Saudi Arabia now owns the largest oil refinery in the United States, according to CNN Money. Texas-based Port Arthur is considered to be the crown jewel of the US refinery system. Saudi Aramco, the state-owned company, earlier co-owned the Port Arthur facility with Royal Dutch Shell (RDSA) called Motiva Enterprises. But the joint venture ran into trouble due to a fractious relationship between the two owners. They decided to separate their assets in 2016. Aramco's plan to take over the sprawling facility was first announced at the end of last year. Aramco paid $2.2bn to Shell in the breakup deal, according to a Bloomberg report. Shell released a statement on Monday that the takeover was complete. Port Arthur can process 600,000 barrels of oil per day. CNN further reported: "Aramco is acquiring full ownership of 24 distribution terminals. Aramco also gets the exclusive right to sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of Texas and the majority of Florida." Aramco buying out Port Arthur coincides with the Trump administration's aim to halt oil imports from Saudi Arabia and a push to be self-sufficient in its energy needs. During last year's election campaign, Trump said he wanted America to be independent of "our foes and the oil cartels". US currently imports 1.3 million barrels of crude oil from Saudi Arabia, according to Energy Information Administration. Aramco also believes that the IPO would be valued at $2 trillion, which would make it the highest IPO valuation in history. The state-owned oil behemoth is hoping for the IPO's success, which has been bolstered by the Saudi government's decision to halve the company's corporate tax rates. (WION)

Saudi Arabia's Aramco acquires US' largest oil refinery for $2.2bn

Oil prices rose slightly after reports Saudi Arabia had started talks with customers about a reduction of up to 7 per cent in crude sales in February to support an attempt by OPEC to reduce global supply.

The Organization of the Petroleum Exporting Countries (OPEC) promised in November to cut output to help prop up prices.&nbsp;Under the deal, Saudi Arabia agreed to cut output by 486,000 barrels per day (bpd), or 4.61 per cent of its October output of 10.544 million bpd.

&quot;Aramco (Saudi Arabia&#39;s state oil company)&nbsp;is approaching all its customers for possible cuts from February and discussing likely (supply) scenarios,&quot; a source said. &quot;Nothing is confirmed yet,&quot; the source said, adding the scenarios were for cuts of 3-7 per cent.

Investors have been suspicious that OPEC may not cut as much as promised, but several sources have expressed&nbsp;that they believe&nbsp;the world&#39;s biggest oil exporter would comply with the OPEC cuts.

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Benchmark Brent crude oil was up 20 cents a barrel at $56.66 in mid-day trade.&nbsp;US light crude oil was up 20 cents a barrel at $53.46.&nbsp;

&quot;There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance,&quot; Singapore Exchange (SGX) said, citing results from a survey. &quot;Three-quarters of those surveyed went for crude&nbsp;prices averaging within the current $50-$60 a barrel range for 2017,&quot; SGX added.

Analysts at US bank Goldman Sachs&nbsp;said even if OPEC reduced production as promised, there was &quot;only moderate oil spot price upside given the expected supply response to higher oil prices and new production&quot;.

The US bank said it expected Brent prices to peak at $59 a barrel by mid-2017.

In another sign of compliance with the cuts, Abu Dhabi National Oil Company&nbsp;has scheduled maintenance at oilfields for March and April, although it was not immediately clear how much exports might fall.

(Reuters)

Saudi Arabia is mulling over a 7% cut in oil prices, but some analysts fear they will not follow through

Oil prices rose slightly after reports Saudi Arabia had started talks with customers about a reduction of up to 7 per cent in crude sales in February to support an attempt by OPEC to reduce global supply. The Organization of the Petroleum Exporting Countries (OPEC) promised in November to cut output to help prop up prices. Under the deal, Saudi Arabia agreed to cut output by 486,000 barrels per day (bpd), or 4.61 per cent of its October output of 10.544 million bpd. "Aramco (Saudi Arabia's state oil company) is approaching all its customers for possible cuts from February and discussing likely (supply) scenarios," a source said. "Nothing is confirmed yet," the source said, adding the scenarios were for cuts of 3-7 per cent. Investors have been suspicious that OPEC may not cut as much as promised, but several sources have expressed that they believe the world's biggest oil exporter would comply with the OPEC cuts. "There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance," Singapore Exchange (SGX) said, citing results from a survey. × Benchmark Brent crude oil was up 20 cents a barrel at $56.66 in mid-day trade. US light crude oil was up 20 cents a barrel at $53.46. "There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through with the cuts. Very few respondents expect full compliance," Singapore Exchange (SGX) said, citing results from a survey. "Three-quarters of those surveyed went for crude prices averaging within the current $50-$60 a barrel range for 2017," SGX added. Analysts at US bank Goldman Sachs said even if OPEC reduced production as promised, there was "only moderate oil spot price upside given the expected supply response to higher oil prices and new production". The US bank said it expected Brent prices to peak at $59 a barrel by mid-2017. In another sign of compliance with the cuts, Abu Dhabi National Oil Company has scheduled maintenance at oilfields for March and April, although it was not immediately clear how much exports might fall. (Reuters)

Oil prices rise as Saudi Arabia eyes supply cut

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