Saudi Arabia may tap debt market as oil output cuts hit revenues: sources

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Saudi Arabia is likely to sell new international bonds soon as Sunday's historic deal to cut oil output among major producers puts further pressure on revenues already hurt by the collapse in crude prices, four banking sources said.

DUBAI - Saudi Arabia is likely to sell new international bonds soon as Sunday’s historic deal to cut oil output among major producers puts further pressure on revenues already hurt by the collapse in crude prices, four banking sources said.

“It’s the logical next step ... they may wait a bit for the oil market to react to the cuts as their name is more closely associated with oil,” said a debt banker. To stabilise oil markets, the Organization of the Petroleum Exporting Countries and its allies led by Russia, a grouping known as OPEC+, agreed to cut output in May and June by 9.7 million barrels per day, or around 10% of global supply.“We believe that OPEC+’s proposed 9.7 million b/d reduction for May and June will not be sufficient to counter the sharp drop in global demand caused by the pandemic,” Monica Malik, chief economist at Abu Dhabi Commercial Bank, said in a research note.

 

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Good timeto borrow? Cheap money. Governments creating wads of cash from thin air so debts will be paid back with devalued currency?

One of trumps friends s queese more dollar's out of the world during the health crisis? Birds of a feather . ..

JPM & GS selling the crap? Who buying? Hedge funds? All those characters you come across on CNBC? I actually don't watch it. But I occasionally go to their website if I need something. Scavenging?

Such a shame! I mean people are being killed by a virus all over the World! But they're not making money. So their throwing toys out of the prams! fuckem!

It would be interesting to know the drop in global consumption sinch COVID-19 and the lock downs associated?

Covid_19 has created a huge economic crisis which is going to take some time to recover! Latest updates | cases per million population 👇 COVID19 COVID2019

Under a new Pres, US must cease any alliance, trade etc with Saudi Arabia!

Sure, replace actual Revenue with borrowed Money.. they've been doing that since the FinancialCrisis started

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