According to Business Insider, the International Monetary Fund (IMF) believes that Middle Eastern oil-producing states, namely Saudi Arabia, Iraq, and the UAE will reap a $1.3 trillion windfall over the next four years due to soaring oil prices.
Huge profits are comparable to the level that was expected until February 2022 when the price of Brent crude oil averaged $104 per barrel. In 2021, it did not exceed $71 per barrel. In March 2022, oil prices surged to $139 per barrel after the start of the Russia-Ukraine crisis. Later, the global benchmark plummeted to $95 per barrel amid concerns about a possible recession in the global economy.
Currently, Saudi Arabia is the world’s largest crude oil exporter, ahead of Russia and the US. In the second quarter of 2022, national oil company Saudi Aramco saw its profits surge by 90% to $48 billion. This is the biggest quarterly profit among global oil companies, analysts note.
Experts believe Middle Eastern oil-producing countries should invest in the future, mainly in national technological production. This is essential to reduce their dependence on fossil fuels and raw materials as well as to protect the environment.
