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This picture shows Aramco tower at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023.
Fayez Nureldine | Afp | Getty Images
Saudi Aramco has seen progress slow for the planned initial public offering of its energy trading unit, two sources with knowledge of the matter said on Thursday.
Bloomberg earlier reported the oil giant would postpone the IPO, citing people with knowledge of the matter.
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Reuters reported in June last year that Aramco would merge Aramco Trading with Motiva Trading, which has the largest refinery in the U.S., ahead of a planned IPO.
The deal completed in January, with Motiva Trading becoming Aramco Trading Americas, acting as Aramco Trading’s regional office.
Saudi Aramco and other Middle Eastern producers accelerated their trading efforts as a way to boost incomes after the 2014 collapse in oil prices. They have slowly gained market share from oil majors and Swiss commodity merchants, using access to their own feedstocks and strength in refining to compete aggressively.
Aramco’s share of U.S. oil imports has declined in recent decades as it turned more to Asia and as U.S. shale output grew. However, refiner Motiva remains an important outlet for Saudi crude and its entry point into the world’s biggest oil consuming market.
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