Following the decline in oil prices, Saudi Aramco banks lower a $31.9 billion reduction.

It represents more than three-quarters of the $40.5 billion in first-quarter profits recorded by the five oil majors, BP, Shell, ExxonMobil, Chevron, and TotalEnergies in Britain, the United States, and France.

Saudi Aramco, the world's largest oil company, reported a first-quarter net profit of $31.9 billion on Tuesday, down 19.25 percent from the same period last year due to a decline in crude prices.

The outcome was less than the $39.5 billion reported for the same time period in 2022, when Russia's invasion of Ukraine drove up oil prices.

The five largest oil companies—BP, Shell, ExxonMobil, Chevron, and TotalEnergies—reported first-quarter profits of $40.5 billion, which is more than three-quarters of that amount. BP and Shell are from Britain, while TotalEnergies is from France.

"The results reflect Aramco's continued high reliability, focus on cost and our ability to react to market conditions as we generate strong cash flows and further strengthen the balance sheet," said president and CEO Amin H. Nasser in a statement. "We are... moving forward with our capacity expansion, and our long-term outlook remains unchanged," he added. 

The crown jewel of the Saudi economy, Aramco serves as the primary source of funding for Crown Prince Mohammed bin Salman's ambitious Vision 2030 project of economic and social change.

In 2017, the company announced record revenues of $161.1 billion, which enabled the kingdom to post its first annual budget surplus in almost a decade.

According to Jamie Ingram, senior editor at MEES, "Net income would be higher yet, but Aramco is speeding up investments in contrast to the (international oil firms), which are still keeping more capital discipline.

Saudi Arabia stated in mid-April that it was transferring a 4% stake in Aramco, valued at close to $80 billion, to Sanabil Investments, a company under the authority of the Public Investment Fund (PIF), one of the largest sovereign wealth funds in the world with more than $620 billion in assets.

Four percent of the shares of Aramco that were transferred earlier last year went straight to the PIF.

- Budgetary shortfall According to the finance ministry's December report, the national budget authorised for 2023 anticipates a surplus of 16 billion Saudi riyals ($4 billion) and GDP growth of 3.1%.

According to the official Saudi Press Agency, the finance ministry declared a budget deficit of 2.9 billion Saudi riyals (approximately $773 million) for the first quarter of 2023, indicating a 3% fall in oil revenues and a 29% increase in expenditures.

According to the news agency, "this level of deficit does not cause concern in light of the strong financial position of public finances, so there is a great ability to continue the expansionary fiscal policy" to support the reforms in Vision 2030.

Major oil producers, led by Saudi Arabia, unexpectedly reduced their daily output by almost a million barrels last month. They justified the move as "precautionary" and intended to stabilise the market.

It came after OPEC and its partners, including Russia, collectively known as OPEC+, controversially decided to cut output by two million barrels per day in October.

It represents more than three-quarters of the $40.5 billion in first-quarter profits recorded by the five oil majors, BP, Shell, ExxonMobil, Chevron, and TotalEnergies in Britain, the United States, and France.

Saudi Aramco, the world's largest oil company, reported a first-quarter net profit of $31.9 billion on Tuesday, down 19.25 percent from the same period last year due to a decline in crude prices.

The outcome was less than the $39.5 billion reported for the same time period in 2022, when Russia's invasion of Ukraine drove up oil prices.

The five largest oil companies—BP, Shell, ExxonMobil, Chevron, and TotalEnergies—reported first-quarter profits of $40.5 billion, which is more than three-quarters of that amount. BP and Shell are from Britain, while TotalEnergies is from France.

"The results reflect Aramco's continued high reliability, focus on cost and our ability to react to market conditions as we generate strong cash flows and further strengthen the balance sheet," said president and CEO Amin H. Nasser in a statement. "We are... moving forward with our capacity expansion, and our long-term outlook remains unchanged," he added. 

The crown jewel of the Saudi economy, Aramco serves as the primary source of funding for Crown Prince Mohammed bin Salman's ambitious Vision 2030 project of economic and social change.

In 2017, the company announced record revenues of $161.1 billion, which enabled the kingdom to post its first annual budget surplus in almost a decade.

According to Jamie Ingram, senior editor at MEES, "Net income would be higher yet, but Aramco is speeding up investments in contrast to the (international oil firms), which are still keeping more capital discipline.

Saudi Arabia stated in mid-April that it was transferring a 4% stake in Aramco, valued at close to $80 billion, to Sanabil Investments, a company under the authority of the Public Investment Fund (PIF), one of the largest sovereign wealth funds in the world with more than $620 billion in assets.

Four percent of the shares of Aramco that were transferred earlier last year went straight to the PIF.

- Budgetary shortfall According to the finance ministry's December report, the national budget authorised for 2023 anticipates a surplus of 16 billion Saudi riyals ($4 billion) and GDP growth of 3.1%.

According to the official Saudi Press Agency, the finance ministry declared a budget deficit of 2.9 billion Saudi riyals (approximately $773 million) for the first quarter of 2023, indicating a 3% fall in oil revenues and a 29% increase in expenditures.

Ibrahim al-Ghitani, an energy specialist based in the UAE, claimed that the production reductions and broader economic trends could raise oil prices later in the year.

Sadly, because of the financial dangers present in the US market, traders are currently dominating the oil market, he stated.

However, he added, "expectations are that Chinese demand will increase" as the year progresses.