Analysis of Saudi Aramco share price for trading

Recently, Saudi Aramco has been listed on the stock market so it's now possible for you to speculate on its price via CFDs or buy this value in order to add it to your stock market portfolio. You can check out some practical information here which will help you to set up a precise investment strategy for this share with explanations on the activities of the group, a presentation of its main competitors or its recent partnerships. We'll finish by revealing some tips for developing a fundamental quality analysis on this value.  

Trade the Saudi Aramco stock!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Analysis of Saudi Aramco share price for trading

Our advice for trading Saudi Aramco share

Tip number 1

First of all, keep an eye on the raw materials market and, more specifically, on the price of oil which the group’s activities largely depend on.

Tip number 2

Carefully follow OPEC's declarations and all decisions concerning production quotas which will also have a direct impact on the price of this value.

Tip number 3

You will naturally have to keep an eye on the competitors whose activities are linked to those of Saudi.

Tip number 4

Also pay attention to all operations likely to modify the growth trends of this group such as partnerships, creation of joint ventures, takeovers or sales of subsidiaries and any other companies in the world.

Tip number 5

You should also follow the official communications of this group for this fundamental analysis, in particular regarding its strategic growth plans and compare them with the results actually obtained by analysing the annual or quarterly financial results of the group.

Trade the Saudi Aramco stock!
75% of retail investor accounts lose money when trading CFDs with this provider.

Details of the Saudi Aramco group's activities:

To start this article about the Saudi Aramco share, we suggest you learn a little more about the company and its activities with a slightly more detailed presentation of the group.

The Saudi Aramco group also known as the Saudi Arabian Oil Company is a Saudi national company specializing in the field of hydrocarbons. Its name actually comes from the contraction of the Arabian American Oil Company.

The company owns all the hydrocarbon resources of the territory too and is currently the very first oil company in the world in terms of reserves and in terms of its production. The company's headquarters are in Dhahran, in the east of the country, and the main oil deposit it operates is located in Ghawar. It's the world's largest deposit.

In August 2019, the Saudi Aramco group published its profit and loss accounts for the first half of 2019 with a net profit down 12% to 41.9 billion euros mainly due to a 4% drop in the average price of crude oil. Its half-year turnover amounted to 146.9 billion dollars.

 

Know the competition of the Saudi Aramco stock:

Obviously, although Saudi Aramco is currently world leader in the oil company sector, it's important to know its main competitors, here are the details:

  • Sinopec: Number two in this global ranking is Sinopec, also known as China Petroleum and Chemical Corporation which is a Chinese company based in Beijing. However, despite its large size, this company doesn't produce as much as the other companies in this ranking. It's also specialized in refined products such as fuels and produces an average of 1.6 million barrels each day.
  • China National Petroleum: Third place in the ranking goes to the China National Petroleum Corporation. It produces almost 4.4 million barrels each day.
  • Petrochina: In fourth place is the Petrochina group which is a Chinese oil and Gas Company and a subsidiary of the China National Petroleum Corporation.
  • Exxon Mobil : Fifth place in the ranking goes to Exxon Mobil which is a company based in Texas and is also the largest private company in this sector. It operates on the majority of continents in these two business sectors.
  • Kuwait Petroleum Corporation: In sixth position is the Kuwait Petroleum Corporation, which is the only group to have made no acquisitions. It's one of the few producers in the Persian Gulf forming the backbone of OPEC.
  • Royal Dutch Shell: In sixth place, the Anglo-Dutch company is one of the most important in the world and has activities all over the globe. The company has recently moved towards a diversification of its activities by developing its production of natural gas.
  • BP : The British group BP is in seventh position in this ranking, particularly thanks to numerous acquisitions, many of which are in the United States and has been active in this sector for over a century.
  • Total : In ninth place, the French giant Total which operates throughout the oil life cycle with operations worldwide. This group bought Sunpower in 2011 and has therefore developed in the solar energy sector.
  • Lukoil: Finally, the tenth and last place in this ranking is occupied by Lukoil which is a Russian company bought by Getty Oil in 2000.  Most of its production is still carried out in Russia, but the group also has production sites in Iraq.

As part of your analyses of this value, you should take this competition into account and follow all the news from the main opponents of Saudi Aramco.

 

The strategic alliances set up by the Saudi Aramco group:

The Saudi Aramco group also has some allies and is able to set up interesting strategic partnerships aimed at promoting its growth and boosting its profitability. Here are some specific and recent examples.

  • The Dow Chemical Company: In 2011, the Saudi Arabian Oil Company announced a strategic partnership with The Dow Chemical Company based on the creation of a joint venture in order to build and operate a chemical complex of international influence in the industrial city of Jubail in Saudi Arabia. This new joint venture was named Sadara Chemical Company and was the logical evolution of a comprehensive study on the feasibility of the project and the deployment of many engineering and design efforts that began in 2007.
  • TechnipFMC : In 2019, it was with the TechnipFMC group that Saudi Aramco signed a new long-term partnership. This is a 6-year agreement for engineering, equipment supply, manufacturing, transportation and installation of offshore infrastructure to develop offshore projects for the Saudi Arabian oil company.
  • Total: Finally, the third and last partnership set up by Saudi Aramco to date is the one it signed with Total. Again, this is a joint venture between the two companies in the development, distribution and sale of petroleum products and related services in Saudi Arabia. The joint venture is owned equally by the two entities and provides for an investment of over one billion dollars on the Saudi market over the next 6 years. This joint venture will also offer motorists premium fuels and a wide range of related services.

Obviously, as part of your analyses of the Saudi Aramco share, you should first take into account the future partnerships that will be set up by the company to take position at the best time, i.e. at the start of each trend and with maximum volatility.

Where and how to trade the Saudi Aramco share price:

The Saudi Aramco stock is now available on some CFD trading platforms and you can start speculating on its live price now by joining one of the best on the market.

Trade the Saudi Aramco stock!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.