24 C
Dubai
Friday, February 14, 2025
spot_img

Saudi Arabia boosts China oil investments, competes with Russia

Saudi Arabia’s state-owned oil company, Aramco, will continue investing in China despite a 38 percent profit decline due to lower oil prices and production cuts. In Q2, net profit dropped to around $30.08 billion, down from $48.44 billion in the same period last year.

Russia’s invasion of Ukraine boosted crude prices, benefiting Saudi Arabia’s revenue. Despite being the G20’s fastest-growing economy in the previous year, Aramco briefly surpassed Apple as the world’s most valuable public company.

However, falling crude prices and unilateral production cuts have cooled the kingdom’s economy. The IMF downgraded Saudi Arabia’s growth forecast from 3.2 percent to 1.9 percent in July.

Brent has fallen about 25 percent from a year ago, and Saudi Arabia’s oil exports are down 40 percent.

Despite the profit decrease, Aramco CEO Amin Nasser expressed commitment to expanding their presence in China, where Saudi Arabia competes with Russia.

Saudi Arabia has heavily invested in Chinese refineries and recently acquired a 10 percent stake in China’s Rongsheng Petrochemical for about $3.6 billion. This move will provide additional crude oil to Rongsheng-affiliated refineries.

Saudi Arabia and Russia are both striving to become China’s primary oil supplier. Amid rising oil prices and efforts to limit crude supplies, Saudi Arabia has played a significant role in the OPEC+ alliance.

As Saudi Arabia’s market share in Asia declines compared to Russia, which has become India’s primary oil supplier, competition for China’s market share intensifies. Russia turned to China as a customer after Europe rejected its oil post-Ukraine invasion.

With limited growth potential in Europe due to climate goals, Asia has become a crucial battleground for oil sales.

Next Article

Related Articles

NASA Accelerates Crew 10 Launch: Sunita Williams and Butch Wilmore to Return to Earth Ahead of Schedule

NASA Accelerates Crew 10 Launch, Forces Early Return for Sunita Williams and Butch Wilmore As Crew 9 prepares for their return, their accomplishments on the...

Meta Slashes 5,000 Jobs Amid Aggressive Cost-Cutting Strategy as Ad Revenue Plummets.

Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has announced another wave of layoffs that will impact 5,000 employees worldwide. This move comes...

Saif Ali Khan, Bollywood actor Reacts to Attack: Calls It a Botched Burglary Attempt

Saif Ali Khan recently addressed the incident where an intruder attempted to break into his Mumbai residence, describing it as a burglary attempt gone...

France and UAE Forge $50 Billion AI Data Centre Partnership to Drive Innovation

France and the United Arab Emirates have announced a landmark collaboration to develop a 1-gigawatt artificial intelligence data centre, with investments ranging between $30...

Greens Push for NBN CEO Pay Cut Amid Cost-of-Living Crisis and Privatization Debate

Greens Call for NBN CEO Salary Cut Amid Cost-of-Living Crisis and Privatization Concerns The Australian Greens have intensified their push for a reduction in the...

Latest Articles