OIL MKT DRIVERS: Aramco’s Reliance Stake; Trade War; Shale Data

By Brian Wingfield


Summary of what’s shaping the oil market on Monday: Aramco said it will buy a stake in India’s Reliance Industries as the Saudi company reported a drop in net income. The U.S.-China trade war continues to weigh on the market. U.S. monthly shale drilling report due.

Saudi Aramco plans to buy a stake in Reliance’s refining and chemicals business to diversify away from a dependence on sales of crude oil

The move by Aramco, the world’s largest oil exporter and most profitable company, preceded a planned public offering that could be held as early as next year
Aramco’s profit dropped 12% to $46.9b in the first six months of the year as crude prices retreated and costs increased

The market’s still absorbing the latest trade friction

President Trump on Friday said planned talks with China next month could be canceled
Also Friday, the International Monetary Fund warned of potential risks to China’s economy if the trade war escalates

European equities and U.S. futures slumped broadly on Monday amid unrest in Hong Kong; stocks were up earlier in Shanghai, South Korea and Sydney, though many markets in Asia are shut for a holiday; the dollar rose by 0.1%
Nigeria’s crude and condensate exports for August were revised higher to 2.14m b/d, the highest in almost four years, due to cargo additions and deferrals
The U.S. EIA plans to release its monthly Drilling Productivity Report later, with shale-production estimates for September

To contact the reporter on this story:
Brian Wingfield in London at bwingfield3@bloomberg.net

To contact the editors responsible for this story:
Alaric Nightingale at anightingal1@bloomberg.net
John Deane, Rachel Graham