US fracklog could sink Saudi Aramco flotation

Recent oil prices have  worried the Saud as they plan the world’s largest flotation of Saudi Aramco which may be scuppered by the US and its drive for energy independence. Saudi Arabia has been reducing output to boost oil price, risking its long-term market share,  while fracking technology has led to the US pumping so much oil that it’s expected to become the largest crude producer in the world  increasing concerns that the world’s glut of oil will continue. Riyadh needs a buoyant oil price so it gets the maximum valuation possible as it plans to list the company before the end of 2018, generating funds to diversify and modernise the country’s economy. A sliding oil price could therefore derail long-term strategic plans. Since hitting a three-year high in the last week of January, Brent crude futures fell 11pc to close on Tuesday at $62.72. Investors were getting very bullish on the oil price, with hedge funds and other money managers building up record net-long bets on oil futures, a run-up that only started to fall back recently.