May 12, 2021 Read More →

Middle East oil producers move to maximize oil assets amid grim revenue future

OilPrice.com:

Within the last month, Saudi Arabia’s state oil giant Aramco has announced the sale of a minority—but large—stake in its pipeline business, the possibility to sell another 1 percent of its stock, and intentions to put up for sale stakes in some oil fields.

Neighbor, ally, and fellow OPEC member UAE in the meantime, has announced plans to list its state oil firm’s drilling business and has launched its own oil futures in a bid to change the face of Middle Eastern oil.

There is a certain feeling that both Saudi Arabia and the UAE are in a rush to make the most of their oil, with both Aramco and Adnoc also making public their intentions to boost their oil production capacity.

Norwegian energy consultancy Rystad Energy also foresees peak oil demand in 2026, citing the rapid adoption of electric vehicles as the probable cause of its revised forecast, which earlier saw oil demand peaking in 2028.

Basically, the long-term outlook for oil-dependent economies is not particularly good. 

[Irina Slav]

More: Middle East Oil Producers Race To Pump Crude and Sell Assets

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