In an effort to stabilize oil prices, Saudi Arabia, the leading nation in the Organisation for Petroleum Exporting Countries (OPEC), reduced its production by one million barrels per day in July and announced its intention to extend this cut through September. Russia, as an OPEC ally, also joined in by extending its export cuts for the same period.
This collective action has led to a rise in the price of Brent crude, reaching around $85 per barrel, compared to $75 at the end of June. However, these prices are still significantly lower than the previous high of $127 per barrel witnessed after Russia’s invasion of Ukraine in the previous year.
Acknowledging the global economic uncertainty and market volatility experienced in the second quarter of 2023, Amin Nasser, the CEO of Saudi Aramco, highlighted the company’s strong earnings due to their cost-effective production, reliable supply, and high demand for their products.
Despite a decline in profits, Saudi Aramco remains committed to its largest-ever capital expenditure program and has expressed its intention to further invest in China as part of its efforts to diversify its activities abroad. The company’s investments in the first half of the year rose by 13%, reaching $19.2 billion, aimed at capturing unique growth opportunities.
To expand its presence in China, Saudi Aramco recently acquired a 10% share in Rongsheng Petrochemical, a Chinese chemical company, for RMB 24.6 billion (£2.7 billion), along with a long-term sales agreement.
In April 2019, the Saudi government conducted an initial public offering (IPO), selling approximately 1.5% of Saudi Aramco to investors.
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