Saudi Aramco turns to China for future oil demand as profits fall 25%

Saudi Aramco reported a decline in profits Sunday while saying that it intends to invest more in China, where it sees much of the future oil demand. 

The state-run oil company’s profits fell 25% to $121 billion for 2023 after breaking a record in 2022 of $161 billion off the back of higher energy prices caused by the war in Ukraine. Despite the fall in profit, 2023 still recorded the second-highest profit ever for Aramco. 

The fall was mainly due to reduced global demand for oil, which stood at 101.7 million bpd in 2023, according to the International Energy Agency. The decline was due in part to China's economic recovery from the coronavirus pandemic being slower than expected, keeping crude prices below $95 per barrel over the past year.

However, the world's largest oil firm's dividend increased to $98 billion, a third more than in 2022 when it reaped a record profit.