Saudi Arabia's state oil giant, Aramco, has seen a significant boost in its shares on Sunday, a clear testament to the success of its major stock sale. This sale, poised to raise approximately $11.2 billion, has been a resounding success, instilling optimism in the market. 

As per CNBC, at 6:40 A.M ET, shares were trading at around 28.85 Saudi riyals ($7.69) on the Tadāwul Saudi stock exchange, surpassing the stock sale offer price of 27.25 Saudi riyals ($7.27). This upward trend in Aramco's shares could potentially influence the oil market, a crucial development for investors and analysts to be aware of. 

The secondary offering, announced on May 30, experienced robust demand, reportedly topping $65 billion. Sources cited in a VCPost report reported that more than half of the sale was placed with foreign investors.  

The stock sale aligns with Saudi Arabia's ambitious Vision 2030 program, spearheaded by Crown Prince Mohammed bin Salman. This program aims to diversify the economy away from oil dependency. This initiative includes several costly "gigaprojects," such as the $500 billion futuristic city of Neom.

READ MORE: Saudi Aramco Plans Higher Dividends and Investments to Propel Saudi Arabia's Economy

Oil Prices in 2024

However, although Saudi Aramco's stock sale was well-received and successful, the overall oil market is experiencing instability. Specifically, oil prices have been falling for three weeks due to uncertainty about future oil demand. 

Additionally, investors are worried about potential delays in the U.S. Federal Reserve cutting interest rates. Interest rate cuts can stimulate economic activity and increase oil demand. If these cuts are delayed, it could mean slower economic growth and continued low demand for oil.

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