Saudi Arabia: Oil and gas play a huge role in Saudi Arabia’s economy. This country is one of the largest oil producers in the world and its economy gets huge revenue from the sale of oil and gas. However, the Saudi Arabian government has taken several steps in recent years to diversify the economy and reduce dependence on oil. However, even after this, Saudi Arabia earns so much money from oil that you cannot even imagine. Let us tell you about it in detail today.
Oil is sold by the barrel
Oil is usually sold by the barrel. A barrel contains approximately 159 liters of oil. Oil is priced per barrel in the international market. For example, Brent crude and WTI crude are often priced per barrel. This is a standard of measurement and makes it easier to understand and compare oil prices.
Saudi Arabia earns billions of dollars every year from oil
Saudi Arabia earns billions of dollars every year from oil and gas exports. In the year 2023, Saudi Arabia earned about $326 billion from oil and gas exports. This is a large part of the country’s total income. You can consider it the mainstay of Saudi Arabia’s economy. Saudi Arabia’s oil company, Aramco, is one of the largest oil producing companies in the world and its production and exports have a great impact on global markets.
Where is the most oil found?
Venezuela ranks first in the world in oil reserves. According to the report, Venezuela has more than 304 million barrels of oil. After this, Saudi is at second place. It has more than 298 billion barrels of oil. Canada is at third place in this list. Canada has more than 170 million barrels of oil. Iran is at fourth place. It has more than 157.8 billion barrels of oil.
How oil is sold in the international market
The buying and selling of oil in the international market depends on many factors. Oil prices depend on the balance of supply and demand. When demand is high and supply is low, prices rise. The price of oil is determined in international markets, such as the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE), oil sales often take place through futures contracts, in which buyers and sellers agree to buy or sell oil at a fixed price on a future date. Oil trading takes place on different platforms and involves large investors, hedge funds and other financial institutions. At the expiry of the contract, the actual delivery of oil takes place, which is done through pipelines, tankers and other means.
Who is Saudi Arabia’s biggest customer
China is Saudi Arabia’s biggest oil customer. China buys more than 20% of Saudi Arabia’s total oil exports. This trade reflects the strong economic relations between the two countries. Saudi Arabia is an important source for meeting China’s growing energy needs. Apart from this, other major customers of Saudi Arabia are Japan, India and South Korea. Saudi Arabia’s trade relations with these countries are also quite good, but China is the biggest and major customer.
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