Saudi Aramco Posts Record Quarterly Profit on Surging Oil Prices
Wall Street JournalDec 23, 2021
The Facts
On Sun., oil giant Saudi Aramco announced that its profits soared more than 80% in the first three months of the year, marking a record net income of $39.5B - up from the $21.7B during the same period last year.
This comes as the company overtook Apple to become the world's most valuable company. Aramco's shares rose by 4.7% on Sun., leaving its value at $2.64T, while Apple was worth $2.38T at Friday's close.
The Spin
Narrative A
Unfortunately, OPEC has decided that the best response to global commodity panic is no response at all. OPEC is betraying its purpose of bringing stability to the oil market, and is quick to blame rising prices - from which it reaps massive profit - on the politicization of oil. However, politics have always played a role in the market, and it's time for OPEC to bring calm to a tumultuous world.
Narrative B
It's time for diplomacy; the US needs to improve its relationship with Middle East oil-producing countries. OPEC has been a useful bogeyman for lawmakers since the first oil crisis in 1973, but this is just Washington pointing its finger at someone else for the pain at the pump.
