By: Newsdesk Team
City of London Newsroom
Saudi Aramco is pressing ahead with its listing plans this week despite the ongoing geopolitical fall-out rekindled by the recent attacks on the Abqaiq oil processing plant, the world's largest, and the Khurais oilfield.
However, the big issue is simply "when will the output be restored ?" Market analysts have cast substantial doubt that Aramco can now meet its deadline and considered opinion is that the offering should at least be delayed to allow the damage to be repaired and output return to production.
It could take months for Aramco, currently the world's biggest oil firm, to restore output after Saturday's attacks, which cut production by 5.7 million barrels per day, accounting for some 5% of the worlds oil supply.
"Brent crude - the international traders benchmark touched off at $64"The state-owned oil group will meet local Saudi banks to discuss the initial public offering (IPO) plans, but bankers at international lenders working on the IPO say they haven't been officially informed by Aramco that there will be any delay so they are continuing to prepare for the flotation which could be in place as early as November this year.
Saudi Arabia's energy minister Abdulaziz bin Salman Al Saud said yesterday [Tuesday, 17th. September] that he expected production to be fully back online by the end of the month, adding that half the production at the damaged facilities had already been restored.
Oil prices have soared by up to 20% after the attacks, at one point reaching $71.95 a barrel, however they have since leveled out as it appears the market disruption will not be as bad as feared.
