David Fickling, Columnist

Saudi Arabia’s $69 Billion Plastics Bet Weakens Its Oil Hedge

Aramco’s purchase of a big stake in Sabic hints at where Riyadh sees crude going in the future. The answer isn’t especially appealing for either side.

March 28, 2019 at 2:09 AM EDT

By David Fickling

David Fickling is a Bloomberg Opinion columnist covering climate change and energy. Previously, he worked for Bloomberg News, the Wall Street Journal and the Financial Times.

Not the best sign for where Riyadh sees the oil market going. — **Not the best sign for where** Riyadh sees the oil market going.
Photographer: Marwan Naamani/AFP

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It’s not every day that the world’s biggest oil company buys the most profitable chemicals business.

Saudi Arabian Oil Co., better known as Saudi Aramco, will pay 123.4 riyals a share for the 70 percent stake of Saudi Basic Industries Corp. held by the Public Investment Fund, the country’s sovereign wealth fund, the suitor said in a statement Wednesday.

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