Shares of Saudi oil giant Aramco have returned to levels not seen since Saudi Arabia launched the oil price war in early March, becoming the first large oil company to regain market value since collapse in oil prices, according to Bloomberg estimates.
Aramco shares gained 3.09% on Tuesday in Riyadh, but the proportion of its shares traded on the Saudi stock exchange, Tadawul, is much smaller than the volumes and shares of ExxonMobil that change hands every day. New York Stock Exchange, for example.
Falling oil prices in early March led to lower share prices for all of the world’s major oil companies, as Saudi Arabia flooded the oil market as demand for coronavirus pandemic weighed down. world oil.
Over the past week, oil majors’ stocks have risen in tandem with rising oil prices, as signs of recovery in demand have started to emerge not only from China but also from the United States.
Aramco’s stocks are now above levels just before its majority owner, the Kingdom of Saudi Arabia, fights a total price war with Russia to claim more market share. Aramco, which has traded on the stock market since early December 2019, has a much smaller trading volume every day compared to the big international oil companies.
The average daily volume of shares traded by Aramco was around $ 35 million last week and $ 100 million Monday. By comparison, the shares of ExxonMobil traded on Monday were worth $ 1.4 billion, according to Bloomberg estimates.
Earlier this month, Saudi Aramco reported net income of US $ 16.66 billion for the first quarter of 2020, down from net income of US $ 22.2 billion in the first quarter of 2019, because of the coronavirus pandemic and the drop in oil prices that Saudi Arabia itself has contributed to worsen. with the oil price war in March.
By Tsvetana Paraskova for Oilprice.com
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