Saudi Arabian oil giant Saudi Aramco today reported second-quarter net income of $6.6 billion, a decrease of 73% from the $24.7 billion it earned in the year ago period due to the COVID-19 pandemic's impacts on demand and pricing. The company averaged crude oil production of 9.3 million barrels per day (mmbpd), and said it produced a single day record output of 12.1 (mmbpd) of crude oil on April 2. Oil prices have rebounded from historic lows caused by the demand shock related to COVID-19 shutdowns and stay-at-home policies.
Big oil was forced to rethink its long-term strategy after having to write down more than $50 billion due to the crash in prices
Oil prices rose Monday on hopes that Republicans aligned with Donald Trump will come out and do a proper coronavirus relief deal with their Democrat rivals in Congress, despite the president going it alone with his string of executive orders. “The oil complex is heavily reliant on that aid,” John Kilduff, founding partner at the New York hedge fund Again Capital, said, referring to the new Coronavirus Aid, Relief, and Economic Security Act (CARES) Act. New York-traded West Texas Intermediate, the benchmark for U.S. crude futures, settled up 72 cents, or 1.7%, at $41.94 per barrel.