Oppenheimer: Aramco IPO Signals Cheap Oil Is Here To Stay

Saudi Arabia’s proposed IPO of the kingdom’s state oil company, Saudi Aramco signals that oil prices are here to stay for the foreseeable future, according to a research report Oppenheimer issued to clients on Monday. Saudi Arabia looks to be positioning itself to weather a prolonged period of depressed oil prices, with the rebalancing of its budget and the proposed IPO of Aramco. The country’s government has set its 2016 budget at $226 billion, down 14% year-on-year with revenues of $138 billion, including $100 billion from oil exports — 73% of the total. The government is predicting a budget deficit of…