Saudi Arabia hikes oil investments as it profits from price surge

Saudi Arabia hikes oil investments as it profits from price surge

Oil prices leapt 50% last year as demand recovered from the COVID-19 pandemic, and then surged above $100 a barrel to 14 year highs in February after Russia invaded Ukraine, leading Western nations to urge major producers to increase output.







Reuters









March 21, 2022 / 06:22 AM IST





Representative image (Source: Reuters)



Saudi Arabia's state oil company Aramco, under pressure from the West to boost output amid soaring prices, pledged on Sunday to hike investments by around 50% this year as it reported a doubling in 2021 profits.

Oil prices leapt 50% last year as demand recovered from the COVID-19 pandemic, and then surged above $100 a barrel to 14 year highs in February after Russia invaded Ukraine, leading Western nations to urge major producers to increase output.

Aramco said it would boost its capital expenditure (capex) to $40-50 billion this year, with further growth expected until around the middle of the decade. Capex was $31.9 billion last year, up 18% from 2020 - indicating an increase of about 50% for this year at the middle of the guidance range.

Asked if Aramco would pump more oil to fill any gaps in the market