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Saudi Aramco profit drops 19% on lower oil prices

Aramco has signed major deals with companies in China, the United States and South Korea recently, and OPEC+ recently announced a supply cut.
A general view shows 09 March 2004 the Shaybah mega-project, the first, and so far sole, oilfield development in Saudi Arabia's vast Al-Rub al-Khali desert, some 800 kilometers (500 miles) southeast of the eastern oil center of Dhahran. The Shaybah mega-project, which sits on top of some 15 billion barrels of proven oil reserves, more than a drop in the ocean of Saudi Arabia's estimated total reserves of about 260 billion barrels, has been producing oil to the tune of 600,000 barrels per day (bpd) for less

Saudi Arabia’s state-owned oil giant Aramco reported a significant decrease in profit on Tuesday. The news is likely related to oil prices being lower than they were a year ago, and the company is bullish following recent deals in China and the United States.

Aramco’s net income for the first quarter of 2023 was $31.9 billion. This constituted a roughly 19% decrease from the $39.5 billion reported during the same period in 2022, Aramco said in a press release.

Background: The price of Brent crude oil, considered the benchmark for global oil prices, was more than $80 per barrel at the start of 2022 and ultimately rose above $100 by the end of the first quarter in March of that year. This was largely due to the supply chain shocks related to the Russian invasion of Ukraine.

Oil prices fell later in the year. At the start of this year, Brent crude was trading around $85 per barrel but fell below $73 per barrel in March.

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