NIFTY 50

Aramco attacks show company entanglement in Saudi politics

Updated : September 16, 2019 08:08 AM IST

The weekend drone attack on one of the world's largest crude oil processing plants that dramatically cut into global oil supplies is the most visible sign yet of how Aramco's stability and security is directly linked to that of its owner — the Saudi government and its ruling family.
The strikes, which US secretary of state Mike Pompeo blamed on Iran despite staunch denials by Tehran, led to suspension of more than 5 percent of the world's daily crude oil production, bringing into focus just how vulnerable the company is to Saudi Arabia's conflicts outside the country's borders, particularly with regional rival Iran.
To prepare for an initial public offering, the company has recently taken steps to distance itself from the Saudi government, which is controlled by the Al Saud ruling family.
Aramco attacks show company entanglement in Saudi politics

You May Also Like

Live TV

recommended for you