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Conflict over oil prices: significant drop in profits at Saudi Aramco

, Conflict over oil prices: significant drop in profits at Saudi Aramco, The Eastern Herald, The Eastern Herald

Through the decline in the previous year, the crude oil price of winning the Saudi state oil company is Saudi Aramco shrunk by about 20 percent. The energy giant reported $ 88.2 billion in net income for 2019 on Sunday, down nearly $ 23 billion year-on-year. The reason was, among other things, falling oil prices and production volumes, the company said.

2019 was an “exceptional year,” said Aramco president and chairman Amin Nassir. The spread of the coronavirus also posed new challenges for the company. “The recent Covid 19 outbreak and its rapid spread illustrate how important agility and adaptability are in an ever-changing world.”

Saudi Arabia had previously unsuccessfully attempted to further restrict crude oil production in the Opec oil cartel and with allied countries such as Russia. From April, the states can use it to extract as much crude oil as they want. As a result, oil prices had plummeted historically. Shares in the Aramco group, which had launched its largest initial public offering three months ago, lost significant value.