Bearish
$RDS.B Investors are dumping oil. So why would anyone buy Saudi Aramco? But prices aren't headed in that direction. Global economic growth is weakening, reducing demand, and climate crisis fears are escalating. OPEC said in a report published this week that annual demand growth for oil will slump to just 500,000 barrels per day at the end of the next decade, as developed countries shift to renewable sources of energy. Additionally, many big institutional investors are under enormous pressure to dump oil assets because of the greenhouse gas emissions they generate and declining performance. Norway's giant wealth fund said it would phase out oil and gas stocks earlier this year. According to Carbon Tracker, a think tank, every major oil and gas company, including Aramco, has committed to recent projects that don't align with the Paris Climate Agreement, which aims to limit the increase in global average temperatures to 1.5 degrees Celsius.
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