Saudi Arabia is set to push the Organization of the Petroleum Exporting Countries to make deeper oil-production cuts by pressuring laggard members ahead of its state-run oil company’s massive initial public offering.
The effort is aimed at bolstering oil prices CLZ19, +1.65% BRNF20, +1.43% and reminding potential Aramco investors of Saudi Arabia’s considerable sway within OPEC, people familiar with the plan said. Nigeria has agreed to improve compliance and lobby other African producers to follow suit, they said.
Saudi Arabian Oil Co., or Aramco, this week officially unveiled its plan for an IPO on the Saudi stock market beginning on Dec. 11. On Dec. 5, Saudi Arabian delegates are scheduled to join OPEC’s 13 other oil-producing nations along with 10 nations from a Russian-led coalition for a meeting in Vienna.
“They will be under enormous pressure to succeed [in pushing prices up] just before the IPO,” which is taking place six days later, one Saudi oil adviser said.