Saudi Aramco posted a 39 percent rise in third-quarter profit on Tuesday, thanks to a rise in crude oil costs that generated providential profits for big energy companies around the world.
The state-owned power company, officially called Saudi Arabian Oil Co. , reported a net profit of $42. 4 billion in the quarter, up from $30. 4 billion at the same time last year. $28. 7 billion last year.
“While global crude oil costs in this era have been affected by the current economic uncertainty, our long-term view is that oil demand will continue to grow for the rest of the decade, given the global need for more affordable and reliable energy,” he said. Saudi Aramco Chairman and Chief Executive Amin Nasser said in a statement.
OPEC oil producers, of which Saudi Arabia is the de facto leader, cut its production quotas by 2 million barrels in early October in a bid to boost prices.
Oil costs have risen nearly 20% this year, peaking above $120 a barrel in March following the fallout from Russia’s war with Ukraine. The clash triggered Western sanctions against Moscow and curbed supplies.
This has generated providential profits for large global power companies in recent months, leading to calls for a providential tax on economies suffering from rising electricity costs. President Joe Biden threatened Monday to impose a tax on electric corporations if they don’t invest their profits.
Brent crude, the foreign benchmark, rose 1. 4 percent to $94. 13 a barrel in Tuesday’s last check, while WTI crude rose 1. 3 percent to $87. 66 a barrel.
But oil costs have fallen more than 6 percent in the past three months, driven by fears that a recession could hurt demand, in part because of China’s faltering economy. The world’s second-largest economy has resumed enforcing COVID-19 restrictions, adding lockdowns, which have hurt businesses and lowered hopes.