Saudi Aramco continues to reap big profits

[Corruptistan]

Saudi Aramco continues to reap big profits​

The Saudi oil giant has been investing in futuristic technology as it benefits from high oil prices.

Visitors stop at the Aramco exhibition section at the Misk Global Forum on innovation and technology held in the Saudi capital, Riyadh, on Nov. 13, 2019. - FAYEZ NURELDINE/AFP via Getty Images

Al-Monitor Staff

November 1, 2022

Saudi Arabia’s state-owned oil company took in tens of billions of dollars in profit this quarter.
Aramco said today that its net income for the third quarter of 2022 was $42.4 billion.

This was compared to $39.5 billion in the first quarter and $48.4 billion in the second. In the third quarter of 2021, Aramco’s profits were $30.4 billion, according to a press release.

Why it matters: Oil prices have been relatively high for much of the year. The price of Brent crude oil, considered the global benchmark, began climbing toward $100 a barrel in January as the world recovered from the COVID-19 pandemic. Then prices shot above $100 a barrel in March in response to the Russian invasion of Ukraine.

Brent crude prices have been up and down since then but haven’t gone below $80 a barrel, according to market data.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other oil producers in the so-called OPEC+ alliance agreed to cut their collective oil production in September — the first supply cut in more than a year. Saudi Arabia had expressed concern about market volatility in the lead up to that decision.

In October, OPEC+ announced a major production cut of 2 million barrels per day. Saudi Arabia, the United Arab Emirates and other members of the cartel said the decision was motivated by economic factors. The Biden administration and Democrats in Congress accused Saudi Arabia of seeking to benefit Russia, leading to tensions.

President Joe Biden has been asking Saudi Arabia to boost production for months due to high fuel prices in the United States and visited the kingdom for this purpose in July.

Know more: Saudi Aramco has been investing in some non-oil sectors amid its high profits. In October, the oil giant launched a $1.5 billion venture capital fund focused on sustainability. In April, they announced plans to support an artificial intelligence research center in Saudi Arabia.

Aramco is still committed to the oil sector with its investments, though. They also acquired part of the US lubricant giant Valvoline in August.

Read more: https://www.al-monitor.com/originals/2022/11/saudi-aramco-continues-reap-big-profits#ixzz7jWlJ4h1v