Crudeoil: Oil gains on Monday as Aramco halts production increase, keeping supply steady.
The Oil prices steady after the Saudi Aramco company said no increase in production, Company have steep fall in profits in Q4 as $121 billion. Saudi Arabia is planning to invest in China refineries where Oil demand is higher from this profits and also paying dividends to its shareholders.
XTIUSD is moving in Descending Triangle and market has reached lower high area of the pattern
Oil prices show slight gains on Monday following Saudi Arabia’s Aramco decision to postpone the planned production increase from 12 to 13 million barrels per day by 2027. Despite the minimal impact on actual production levels, the news contributes to a narrow trading range for crude oil between $75 and $80. The US Dollar faces a volatile week with data-driven movements, as the absence of Federal Reserve speeches during the blackout period leads to unpredictable scenarios. WTI Crude Oil trades at $77.83 per barrel, while Brent Oil is at $82.05 per barrel.
OPEC’s continued floor presence and the unresolved situation in Gaza add to market dynamics. Additionally, Saudi Aramco plans to increase dividend payments due to higher benchmark oil prices, while an oil tanker collision in India raises concerns about potential delays in crude deliveries.
Crudeoil: Aramco Increases Dividends Despite Profit Decline
The Oil prices steady after the Saudi Aramco company said no increase in production, Company have steep fall in profits in Q4 as $121 billion. Saudi Arabia is planning to invest in China refineries where Oil demand is higher from this profits and also paying dividends to its shareholders.
Saudi Aramco Reports 25% Profit Decline in 2023, Boosts Dividends Amidst Oil Price Challenges
Saudi Aramco, the energy giant, faced a substantial 25% decline in profits due to reduced production and a sharp fall in oil prices throughout 2023. Despite this setback, the company’s profits still reached $121 billion, marking the second-highest in its history.
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In response to the challenges, Saudi Aramco has decided to increase dividends to $98 billion, a nearly one-third rise compared to the record-breaking profit year of 2022, when geopolitical events significantly impacted energy prices. The Saudi state, holding almost 95% ownership, will benefit from the increased dividends, contributing to the kingdom’s budget surplus.
The decline in oil prices, which retreated to $85 a barrel in 2023, coupled with production cuts aimed at supporting oil prices, posed additional challenges to profits. Despite these obstacles, Aramco’s CEO, Amin Nasser, emphasized the company’s resilience and agility, achieving the second-highest net income in 2023.
Looking ahead, Saudi Aramco aims to diversify its economic contributions, with plans to make announcements on renewable investments in Saudi Arabia during the year. Additionally, the company is exploring investment opportunities in China, where oil demand is on the rise. Nasser anticipates a “fairly robust” oil market in 2024, with discussions underway for potential stakes in collaborations with automakers Renault and Geely on hybrid car engines.
Crudeoil: Saudi Aramco’s Profits Fall 24.7% in 2023; CEO Cites Red Sea Challenges
The Oil prices steady after the Saudi Aramco company said no increase in production, Company have steep fall in profits in Q4 as $121 billion. Saudi Arabia is planning to invest in China refineries where Oil demand is higher from this profits and also paying dividends to its shareholders.
Saudi Aramco reported a 24.7% decline in profits for the year 2023, attributed to lower oil prices and production cuts. CEO Amin H. Nasser acknowledged concerns about the Red Sea as a contributing factor.
The oil giant disclosed in a filing to the Saudi stock market that net income amounted to 454.7 billion Saudi riyals ($121.25 billion) in 2023, down from 604.01 billion Saudi riyals ($161.07 billion) in 2022. Aramco cited the decrease as primarily stemming from the impact of reduced crude oil prices, lower sales volumes, and weakened margins in refining and chemicals.
XTIUSD is moving in Descending channel and market has reached lower low area of the channel
The surge in oil prices following Russia’s invasion of Ukraine in February 2022, which peaked at over $130 per barrel, had a profound impact on the industry.
As of my last knowledge update in January 2022, I don’t have information on the most recent developments. Saudi Aramco reported record profits for 2022, resulting in the kingdom’s first annual budget surplus in nearly a decade. In 2023, Aramco achieved its second-highest net income, demonstrating resilience and agility amid economic challenges. The company increased dividends by 30% year-on-year in 2023.
Oil prices dropped to $85 per barrel in the previous year, leading to profit declines for Aramco in various quarters. The extension of oil supply cuts, global uncertainties related to geopolitical events, and analysts’ expectations of oil prices reaching $88-$90 per barrel in 2024 are mentioned in the context.
Please note that for the latest information, you should check reliable news sources or official statements from Saudi Aramco.
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