Sep.27,2016
Russia and the Saudis have a vested interest in improving the value of reserves in the ground. Saudi Arabia wants to sell 5% of Aramco, receiving some $2 trillion from the IPO, but the value of Aramco is determined by the value of the company’s oil reserves and therefore the price of oil. The same with Moscow, its currently planning to sell Rosneft shares but again with current low oil prices,what was originally estimated to bring in a very needed $18.5 billion, currently amounts to about $11.5 billion. Anyway in order for these two countries to get as much as they need, they must now raise the price of oil. And that means the outlook for an accord on oil prices going forward is good.