Breakingviews

Saudi Arabia’s post-oil reform vision looks blurry

April 25, 2016

Riyadh’s new plan to reform the economy, Vision 2030, entails creating a giant SWF and listing a stake in state oil firm Aramco. It will raise cash, but won’t solve the kingdom’s crude problem. To truly advance as an economy, Saudi needs greater economic and social openness.

Chancellor: Oil prices don’t need a Doha to rise

April 22, 2016

An agreement among feuding OPEC members to cut production may still be elusive. But the Saudis and other oil-producing nations are in no position to ramp up. As U.S. oil output is set to fall sharply this year, the price of energy is likely to keep heading upwards.

Saudi’s sweet debt deal could rebound on banks

April 21, 2016

The kingdom is close to its first international debt deal in 25 years to plug a hole in its finances caused by weak oil prices. Vast oil reserves make Saudi debt enticing, but the price slump is changing the game in several ways. And Middle East states have defaulted before.

Saudi U.S. selloff threat not to be trifled with

April 20, 2016

The kingdom has told lawmakers it would dump some $750 bln of assets should Congress pass a bill allowing 9/11 victims to sue. These funds are its last line of defense to lower oil prices. That the alternative - having assets frozen - is an even worse outcome is scarier still.

Give OPEC more power and let Iran and Saudi bicker

April 19, 2016

A bitter struggle between Riyadh and Tehran has hit the credibility of the group, after their rift stymied a freeze to oil output. The dispute implies the cartel needs reform and more power to offset the political motives of its members. The outcome: a more stable oil market.

OPEC freeze failure could hasten oil’s recovery

April 18, 2016

Producers failed to agree a deal to freeze supply at a meeting in Doha. The failure was largely due to Saudi Arabia’s refusal to allow Iran to be exempted from an agreement. Prices will drop initially, but if OPEC disintegrates the stalemate could hasten crude’s recovery.

The Exchange podcast: Lord Browne of L1 Energy

By Rob Cox
March 24, 2016

The former BP chief swings by Times Square to discuss his new book on how companies can radically engage with the wider world and become more inclusive to the benefit of owners. He also talks about the potential for M&A in the energy business, the oil market and Brexit.

Saudi-Russia oil deal is full of holes

February 16, 2016

The crude producers have agreed to freeze production at January levels. But both Russia and the OPEC kingpin are already pumping nearly flat out. And Iran, which wants to raise output after years of sanctions, may not agree. At best, it may lead to a more ambitious deal later.

Cox: Argentina, Aramco are deals for tricky times

By Rob Cox
January 26, 2016

Two big transactions dominated Davos. One would open up a democracy to capital markets after years of feckless governance and isolation. The other is designed to help a repressive regime retain power. In the world’s current parlous state, it’s to be hoped that both get done.

Saudi Aramco IPO could herald a Riyadh garage sale

January 12, 2016

The IPO of a strategic stake in Saudi Aramco could be the start of a kingdom-wide selloff of state assets. The government owns stakes in locally listed firms worth $170 billion. By spinning these off to compensate for lower oil revenue, it could fund years of budget deficits.