16.04.2020 ARAMCO Daily Analysis

16.04.2020 ARAMCO Daily Analysis

One would have expected Aramco shares to be soaring right through the roof at this point after the deal between OPEC and allies that happened last week. However, that isn't the case and the opposite in fact seems to be happening. The State owned oil company's stock value briefly improved but again erased all gains immediately. Currently the stock is trading at 30.00 SAR (-2.28%). Saudi Arabia and Russia each promised to cut production by 8.5 billion barrels per day but Saudi Arabia hinted at cutting their production even further. In another move, Aramco has said they will be cutting oil prices in Asia and the Mediterranean region while hiking prices higher for the USA and Northwestern Europe. This officially makes the prices the lowest they have ever been in almost twenty years. This makes a lot of sense considering that Asia is Aramco's biggest client and Aramco has to keep a firm foothold in the region.