Saudi Aramco sees massive drop in third quarter profits
The Saudi oil giant's slump is indicative of the crisis in Middle Eastern and global oil as the COVID-19 pandemic continues.
The Saudi Aramco oil company reported a massive slump in profits for the third quarter of 2020. The news is an indication of the continued struggles of oil-rich Middle Eastern countries amid the COVID-19 pandemic.
Aramco’s net profits dropped 44.6% in quarter three, Reuters reported on Tuesday. Aramco is the largest oil company in Saudi Arabia, and Saudi Arabia is the biggest oil producer in the Middle East. Aramco is mostly state-owned, but is also publicly traded.
The slump is indicative of the weakened state of oil in the Middle East due to the coronavirus and the accompanying decrease in global energy demand.
The price of Brent crude oil, considered a global benchmark for oil prices, started the year around $65 a barrel. The price on Tuesday was around $39, a significant drop. Prices began to recover in May after dropping to a historic low of less than $20 in April, but they still remain far lower than before the pandemic.
