Saudi Aramco Almost Triple Profits As Oil Prices Rise


Saudi Aramco, the world’s largest oil company, said on Sunday its third-quarter profits nearly tripled from the previous year as fuel demand recovered from the pandemic and prices rose.

Saudi Arabia’s national oil company, Aramco, said in July-September net income rose to $30.4 billion from $11.8 billion a year ago when oil demand collapsed and prices fell.

The large profits are largely a reflection of the rapid rise in oil prices. Aramco’s statement did not provide full financial details, but it is likely to have averaged $70 per barrel for its oil this quarter, compared to $43.60 per barrel in the same period of 2020.

Saudi Arabia and other oil-producing countries have cut production sharply in response to the drop in demand as the pandemic has slowed driving, air travel and other activities. Now these countries are increasing production, but at a frustratingly slow pace in the opinion of some criticsIncluding the Biden administration.

Aramco said crude oil production averaged 9.5 million bpd in the third quarter of 2021, only a modest increase to 9.2 million bpd in the same period of 2020.

Aramco’s CEO, Amin H. Nasser, said in a statement that he is “optimistic that energy demand will remain healthy for the foreseeable future” despite headwinds such as supply chain bottlenecks.

As world leaders gather in Glasgow this week for what has been described as a momentous event United Nations climate summitAramco’s results are a reminder that the global economy is still dependent on oil. Many forecasters expect oil demand to exceed 2019 pre-pandemic levels next year.

While Western oil companies such as Royal Dutch Shell and BP have been cautious about new long-term investments in oil, a few companies, including Aramco and the United States, Abu Dhabi National Oil Company or ADNOCThey are betting that there will be a market for their oil for many years to come.

Aramco said it increased its capital expenditures by 19 percent in the quarter to $7.6 billion, partly to increase the amount of oil it can produce from 12 million barrels a day to 13 million barrels per day.



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