Aug 15, 2022 - Economy & Business
Saudi Aramco posts record quarter for profitability
- Hope King, author of Axios Closer
Photo: Simon Dawson/Bloomberg via Getty Images
Oil giants have made huge profits this year as prices and demand have soared.
Driving the news: Saudi Aramco, the world's largest oil company, yesterday reported a 90% increase in second quarter profits from last year, to $48.4 billion.
- Peers including Exxon Mobil and Chevron in the U.S. and Shell in the U.K. have also booked record profits.
Why it matters: The war in Ukraine limited oil and gas supply from Russia, accelerating energy prices that were already on the rise as global economies recovered from the depth of the pandemic.
What to watch: Aramco says it expects oil demand to continue to grow through 2030, despite current economic pressures.
- At the same time, weak economic data from China today sent oil prices down 2.9% on demand concerns.