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If Aramco goes public this will happen: Blanch

Is THIS proof Saudi Arabia is done playing a pricing game?

The oil slide is not over yet — we still have a few dollars to go, Francisco Blanch, head of global commodities at Bank of America Merrill Lynch, told CNBC's "Closing Bell" on Friday.

"We are still in the middle of a major Chinese yuan depreciation wave, we still have to get the Iranian barrels ... we also have refinery maintenance ahead of us, which means inventories for crude oil are going to build," said the expert, noting that this is just the natural pace of the market.

The market cycle isn't the only thing that worries investors. Saudi Arabia's state-owned oil company on Friday confirmed that it has been considering options to allow public participation on its equity.

Don't panic, Blanch said, because in a scenario where shares of Saudi Aramco begin to float into the market, there won't be any price implications for oil right away.

However, Blanch believes there are other areas that may be affected.

"It may have implications for the forward price; it definitely may have implications for the Saudi currency," he said.

While some market watchers consider an initial public offering a desperate money-raising move from the Saudis, Blanch considers an IPO of Aramco to be a "strange idea at a strange time."

"The Saudi Arabia monetary authority still has over $600 billion in foreign exchange reserves at their central bank," he said. "Saudi Arabia has a lot of money, they don't need to raise capital right now."

Correction: An earlier version of this story misstated the size of Saudi Arabia's foreign exchange reserves.