Saudi Aramco Shares Dip As Crude Oil Prices Stagnate

Saudi Aramco, the largest oil producer, has seen its shares have seen a significant dip in their value over the past few trading sessions.

Oil Prices Dip

This comes at a time that coincides with the fall of crude oil prices. The price of crude oil that surged, touching the USD 80 per barrel mark, barely a month ago, has now depleted, and has stagnated around USD 75 per barrel.

The rise in oil prices in late December and early January resulted from truncated production from key players in the market, including Saudi Arabia and its biggest nationally owned company, Saudi Aramco.

Currently, as per the latest reports, the price of the benchmark Brent Crude stands at USD 74.48 per barrel, compared to USD 81.87 in mid January.

Similarly, the other benchmark, the WTI Index also dropped in value to USD 70.35, lower than its mid-January mark of over USD 80 per barrel.

One of the reasons why the oil prices dipped is because of the new US administration, under US president Donald Trump, demanded OPEC+ countries, especially Saudis to bring down the oil prices in the global market.

Aramco Shares In Decline

These developments have impacted the company's shares in the equity market listed on the Saudi Exchange or Tadāwul have seen a series of decline over the recent past.

Just in the past week or 5 days of trading sessions, Aramco sessions have dipped by 0.18 per cent or SAR 0.05.

When we look at the larger picture, in the past month of trade, the decline in the company shares look even deeper. This once again coincides with Trump's term, his orders and the dip in crude oil prices.

In the past month, Saudi Aramco stock has lost 1.25 per cent or SAR 0.35 of its total value, taking the cumulative value of each stock to SAR 27.70.

What currently appears to be in favour of the company is the fact that the Trump administration is yet to impose any direct tariffs on Saudi Arabia or any of its business. This has arguably shielded one of the biggest companies in the world from further headwinds.