Article Hero

A $15 billion deal left behind

1637938916.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
26 November 2021
Oil prices drop to two-month lows

According to people familiar with the matter, Reliance Industries, the largest publicly traded company in India, and Aramco – the world’s oil largest producer - have cancelled their agreement for a stake in the Indian conglomerate. Aramco was eyeing the oil-to-chemicals (O2C) business.

Talks between the two broke down over how much Reliance’s business should be evaluated considering that the world is trying to move away from fossil fuels and reduce emissions. According to sources, the due diligence procedure was halted in “early-stage assessment.”

Aramco did not comment but stated that it would maintain its longstanding relationship with Reliance - the largest Indian buyer of Saudi oil.

The rumor comes at a time when the oil market is under pressure. Today, November 26, oil prices dived more than 5%, reaching a two-month low as the rise in COVID-19 cases is scaring investors. For December, the Economic Commission Board expects a surplus of 400,000 barrels per day, reaching 2.3 million BPD in January and 3.7 million BPD in February. In an effort to cool prices, the US is releasing millions of barrels of oil from strategic reserves in coordination with other large consuming countries.

Brent oil fell 5.6% to $77.54 per barrel, while Crude oil was down 6.6% to $73.19 a barrel.

 

Sources: investing.com, reuters.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.