Saudi Arabia’s plan to sell part of its stake in state-controlled oil producer Aramco may suggest the kingdom’s leaders are worried about the long-term prospects for crude demand and prices, said short-seller Jim Chanos, founder of Kynikos Associates.
“What is Saudi Arabia telling us if they want to get out, want to sell 20 percent to you?” Chanos said on Thursday in an interview with Bloomberg Television’s Erik Schatzker.
“Are they worried? One of the concerns, of course, is the long-term price of oil and what if we get a move to electric cars and trucks, which would have a huge impact on long-term demand.”
An initial public offering of part of Aramco, or Saudi Arabian Oil Co., may happen as soon as 2017, Deputy Crown Prince Mohammed bin Salman said in an interview with Bloomberg News on April 1. The sale will be limited to a 5 percent stake in the oil titan, he said.
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