24.03.2020 Aramco Daily Analysis

24.03.2020 Aramco Daily Analysis

Government or Shareholder? Who does the oil company have to impress first?As a publicly-traded company the company has an obligation towards its shareholders but still has to pay Caesar what belongs to Caesar. Aramco has pledged to supply 12.3 million barrels per day of crude in April and May amid a price war with Russia following the collapse of the OPEC+ production cuts that will expire at the end of March. This price war has significantly reduced the value of Russia's Ruble and this means that Russia can now produce their oil cheaply and hence giving Aramco hell in terms of market outreach! So far Aramco is holding up production and supply even though Saudi borders are closed because of the coronavirus pandemic. The CEO had this to say about the production " We have developed emergency and prevention plans in all areas of our business to ensure the ongoing of our business so that we can meet the needs of our customers around the world." Aramco's stock currently goes for $29.50 with a positive movement of $0.90(+3.15%)