The Saudi oil company's profits recorded in the second quarter of 2021 represent an increase of almost 300% compared to the same period last year

Saudi Aramco's profit rises exponentially

photo_camera REUTERS/AHMED JADALLAH - Saudi Aramco's Ras Tanura oil refinery and oil terminal in Arabia

Saudi Aramco's profits grew by $25.46 billion in the second quarter of 2021 compared to the same period last year, valuing it a 288% rise, thanks in part to the global economic recovery that led to increased demand for crude oil, higher oil prices and Saudi Arabia pumping more crude. 

Saudi Aramco is the world's most profitable oil company with net profits that outstrip all other major competitors, beating forecasts by analysts such as JPMorgan, Bank of America and Al-Rajhi Capital based on the company's latest results. 

The increase in global oil demand was related to the relaxation of restrictive measures imposed worldwide to tackle the coronavirus pandemic, vaccination processes and economic stimulus measures by different governments around the world. With this increase in demand, crude oil prices have risen by more than 30% since the beginning of the year in this scenario. 

Instalaciones de Aramco en el campo petrolero Shaybah de Arabia Saudí

"The oil giant has achieved results beyond Al-Rajhi Capital's expectations," Mazen al-Sudairi, a representative of Al-Rajhi Capital, was quoted as saying by Arab News. 

"Our second quarter results reflect a strong rebound in global energy demand and we are heading into the second half of 2021 more resilient and flexible as the global recovery gains momentum," Aramco chief executive Amin Nasser said in an official statement. 

"While there is still some uncertainty around the challenges posed by the COVID-19 variants, we have demonstrated that we can adapt quickly and effectively to changing market conditions," the Saudi oil company's chief executive added in statements also published by Arab News. 

These results mean that Saudi Aramco is ahead of other oil companies such as BP, Chevron Corporation and Royal Dutch Shell, which have also been posting good results in recent months, although without reaching the level of the Saudi state-owned company. Although Amin Nasser acknowledged that it is necessary to remain vigilant and expectant because the pandemic is "clearly far from over".

Saudi Aramco

A sign of this concern is that oil prices suffered their worst week since October last year, with the spread of the Delta variant of the coronavirus, which lowered the short-term demand outlook somewhat. Benchmark Brent crude fell 7 per cent to $70.70 a barrel, all after the Organisation of the Petroleum Exporting Countries and its allies, a group known as OPEC+, agreed to cut oil production.

Global oil demand remains below pre-COVID-19 levels, but should reach near-record levels of 100 million barrels per day next year, Amin Nasser himself explained.

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