Aramco posts record profit in the second quarter of 2022

With the current fuel prices, many motorists have wondered when enough will be enough and the big oil producers will start lowering prices. But it seems that it might take a while since the oil giant Aramco has reported a profit of $48.4bn for the last quarter, breaking their own record.

Huge profits can be explained by the Western nations’ need to become less dependent on Russia, which is one of the world’s biggest oil exporters.

What is quite fascinating is that, according to Bloomberg, Aramco has posted the biggest quarterly profit of any listed company. Exxon Mobil, Shell, and BP have also had record profits this quarter. 

Even though Opec+ has agreed to increase production to help battle the soaring fuel prices, lately the increase has been marginal at best. 

Aramco expects the demand for oil to grow throughout the 2020s even though governments rush to move to alternative energy.

Saudi Arabia pumped 10.5 million barrels a day in the second quarter of 2022. They have ramped up to 11 million barrels a day in July.

94% of Aramco is state-owned, so the decision to increase production is up to the Saudi Arabian government. The U.S. president, Joe Biden, traveled to Jeddah to ask the oil giant to increase its output yet the company has only agreed to modestly boost output naming the diminishing spare capacity as a cause.

Oil prices might rise even further if air travel will rebound back to pre-pandemic levels, but we will just have to wait and see.