How To Interpret Saudi Wealth Fund’s $2 Billion Splurge On Big Oil Stocks

How To Interpret Saudi Wealth Fund’s $2 Billion Splurge On Big Oil Stocks

I cover commodities, mostly oil & gas, often debunking risk premiums.. Grabbing blue chip stocks on the cheap is afterall an enticing prospect.. But the plethora of names also detracted some eyes from PIF's international stakes in the very sector the sovereign wealth fund's wealth actually comes from - oil and gas.. The message to take home from it all is that sector diversity matters to PIF but it is in no mood to deviate from its own petrodollar-infused DNA despite the beleaguered state the oil and gas sector finds itself in over the near-term .. We actively seek strategic opportunities both in Saudi Arabia and globally that have strong potential to generate significant long-term returns while further benefiting the people of Saudi Arabia and driving the country's economic growth.". The opportunities include "sectors and companies" that are well positioned to drive economies and lead sectors moving forward, it added.. To quote PIF's boss - Yasir al-Rumayyan - the fund is looking into opportunities in aviation, oil and gas, and entertainment, adding that there would be a lot of potential for investment opportunities once the current crisis passes.. I am a UK-based oil & gas sector analyst and business