Saudi Aramco IPO delay to have little near-term impact

Reports that the initial public offering of Saudi Arabia’s national oil company, Aramco, will be delayed until next year are not a major surprise given the complexity of the transaction. The delay probably increases the chances of the OPEC oil output agreement being extended again, but we doubt that it will have a significant impact on the near-term economic outlook. Fiscal policy will still be loosened and this should help to lift the economy out of recession this year.