Between april and june, the company made a Profit Ofjust over 30 billion, a lot of money by anyones metric, but significantly down from more than the 48 billion it made in the same period a year ago. The main reason is, as you can see here, that oil prices during the period were at the lowest point in the last year, as the boost they got from russias invasion of ukraine wore off. And last week, in an effort to keep them that way, saudi arabia said it would only produce nine Million Barrels a day. That extended Production Cuts by the 0pec group of big oil producers, who profit more from a higher price. When it comes to saudi aramco, those higher prices mean higher Dividend Payments for shareholders, and its boosted those to nearly 30 billion in the current period. So i put it to our middle east Business Correspondent Sameer Hashmi that even with falling profits, the biggest winner is the saudi government, which is aramcos biggest shareholder. The saudi government owns around 90 of the c
That company is the saudio oil giant saudi aramco, and its feeling the effects of lower oil prices, lower than expected demand from china, and thinner Profit Margins for refining oil. Between april and june, the company made a Profit Ofjust over 30 billion, lot of money by anyone s metric, but significantly down from more than the 48 billion it made in the same period a year ago. The main reason is, as you can see here, that oil prices during the period were at the lowest point in the last year, as the boost they got from russias invasion of ukraine wore off. And last week, in an effort to keep them that way, saudi arabia said it would only produce nine Million Barrels a day. That extended Production Cuts by the 0pec group of big oil producers, who profit more from a higher price. When it comes to saudi aramco, those higher prices mean higher Dividend Payments for shareholders, and its boosted those to nearly 30 billion in the current period. So i put it to our middle east Business Cor
and that s why they have voluntarily cut oil production by1 billion barrels sincejuly, because they want the oil supply to tighten a bit, which could prop up prices. and that s why they have gone ahead and extended those cuts, anticipating that prices may go up. now, the reason behind that is because saudi s and opec and other international agencies expect oil demand to actually decline due to the economic headwinds and because of tightening monetary policy. and this is having an impact on businesses across the globe. and the second reason is china. now, china is the largest consumer of oil in the world. now, many oil companies and oil exporters had expected that demand would really zoom in china once they open. and the country post covid. but that hasn t really happened. the recovery hasn t been that swift, which is why there are concerns that oil demand could decline in the in the second half of the year.
by1 billion barrels sincejuly, because they want the oil supply to tighten a bit, which could prop up prices. and that s why they have gone ahead and extended those cuts, anticipating that prices may go up. now, the reason behind that is because saudi s and opec and other international agencies expect oil demand to actually decline due to the economic headwinds and because of tightening monetary policy. and this is having an impact on businesses across the globe. and the second reason is china. now, china is the largest consumer of oil in the world. now, many oil companies and oil exporters had expected that demand would really zoom in china once they open. and the country post covid. but that hasn t really happened. the recovery hasn t been that swift, which is why there are concerns that oil demand could decline in the in the second half of the year. and lots of people around the world listening to this may not actually be familiar with saudi aramco.