Why Saudi Arabia WILL PUSH OIL PRICE HIGHER

[dan_s]

The Saudis are planning on a Saudi Aramco IPO in 2018 at an estimated market value between $1.25 trillion and $10 trillion.

That's right; trillion with a "T." This would make it the biggest IPO in history and the largest company in the world. For comparison, Apple has a market value of $628 billion. Heck, total U.S. GDP is only $16.77 trillion.

You can see why the Saudi leadership has reversed its strategy to drive down prices and gain market share. They now want to push prices higher, come hell or high water.
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Bloomberg: "Every banker in the world is pursing deals in The Kingdom right now. At the top of that list for bankers is getting a piece of the work involved with the Saudi Aramco IPO. Saudi Arabia has paid out $100 million to investment banks in fees during the first five months of the year, a 30 percent increase. The Saudi Aramco IPO alone should generate roughly $50 million in fees, but the opportunities don’t stop there. Beyond the potentially $2 trillion Saudi Aramco IPO, Saudi Arabia is looking at selling hundreds of state assets in a bid to bolster its finances, reduce its dependence on oil, and create a modern twenty-first century economy. These deals will require not only advisory services on sales and deal structuring, but the sale of potentially up to $15 billion in bonds."

This means investment bankers like Goldman Sachs, HSBC, and JPMorgan Chase will push the oil price higher throughout 2017 to maximize their gains. Expect all sorts of positive oil price reports and CNBC interviews in the second half of 2017.