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Oil gains? Pour it up, pour it upMENA

Oil gains? Pour it up, pour it up

Vision 2030 might be gaining speed across the GCC, but that doesn’t mean oil has lost its shine. Saudi Arabia’s SABIC, the largest Middle East petrochemicals company, posted a significant four-fold increase in its net profits for Q3, reaching $1.5b. Revenues for the company increased by 49% — while net income jumped by almost three-fold — reaching $11.7b and $2.1b respectively. SABIC aims to put the money to good use as its joint venture chemicals project with ExxonMobil (XOM) is set to start in Q4 2021.

France-based TotalEnergies (TTE), one of the seven largest oil and gas companies globally, was also swimming in those oil gains as it reported a five-fold year-on-year increase in net income, reaching $4.8b. The company also saw a 4% increase in production due to higher OPEC quotas to fill in. Other oil firms like Shell (RDSA) weren’t as lucky, though, as it suffered from a $400m loss due to Hurricane Ida.

why it matters

TotalEnergies and SABIC credit their figures to the recent resurgence in global demand — gas prices in Asia/Europe have seen a quarterly increase of 85%, whereas oil prices have jumped by 7%. As supply quotas increase, though, the prices might peak soon — futures for oil already dipped by 1% on Thursday.