Saudi Aramco stock down due to coronavirus

Audio 01:30

By: Altin Lazaj

The coronavirus is starting to seriously affect the oil sector in the Gulf countries. Saudi Aramco, the largest listed company in the world has experienced a fall in its share in recent weeks.

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On December 11, the Saudi oil giant made its debut on the Riyadh stock exchange. By selling only 1.5% of its shares, Aramco pocketed $ 25.6 billion . And in the space of four days, its action jumped 19%. But that was before the arrival of the Coronavirus.

Since the beginning of the year, its share price has dropped 7%. The fall is more significant since December 16, at 13.4%. If the oil giant thus loses most of the gains made since its IPO. The epidemic is indeed causing a shock wave in the oil market.

Following the drastic measures introduced in January to stem the spread of the virus, the Chinese economy, which consumes 14% of world production, is idling. The fall in Chinese demand for oil is causing prices to fall on the market ... They have fallen by around 15% since the start of the year.

But if this crisis persists, it risks weakening all the economies of the Gulf countries, which are very dependent on the oil windfall. Moreover, the rating agency Stantard & Poor's fears that if the epidemic is not brought under control by March, the fall in oil prices will continue. The International Energy Agency has already lowered world consumption for 2020.

All eyes are now on OPEC. Market players hope that the Organization of Exporting Countries and its ally Russia will find an agreement to jointly reduce production of black gold in order to stem the fall in prices.

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• Saudi Arabia
• Oil
• Economy

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