Trump’s commerce conflict hits earnings at Saudi oil large

Uncertainty unleashed by Donald Trump’s commerce conflict has delivered a monetary blow to Saudi Arabia’s state-owned oil large forward of the US president’s high-profile go to to the Kingdom this week.

Saudi Aramco, the world’s largest oil firm, mentioned on Sunday that earnings over the primary quarter of the yr fell by 5pc to $26bn (£19.5bn), as worries over world commerce dampened oil costs.

This led to the corporate reducing its dividend from $31bn to $21.4bn within the closing quarter of final yr.

Amin H. Nasser, chief government of Saudi Aramco, mentioned: “World commerce dynamics affected power markets within the first quarter of 2025, with financial uncertainty impacting oil costs.”

Oil costs have tumbled within the wake of Mr Trump’s “Liberation Day” tariffs announcement, owing to fears that they are going to gradual financial exercise around the globe.

A current resolution by the Opec cartel to extend manufacturing has additionally put downward stress on crude oil costs, which at the moment are hovering at round $64 a barrel.

Saudi Aramco mentioned it offered barrels of crude oil at a mean worth of $76.30 within the first quarter, in comparison with $83 over the identical interval final yr.

Shares within the enterprise have been additionally down greater than 3pc within the final month and have dropped by virtually 17pc during the last yr.

It comes as Mr Trump is getting ready for a tour of the Center East this week, the place he’ll go to Saudi Arabia, Qatar and the United Arab Emirates within the hope of placing a string of profitable funding offers.

Mr Trump has mentioned he hopes to persuade Riyadh to take a position greater than $1 trillion into the US financial system.

Karoline Leavitt, the White Home’s press secretary, mentioned final week Mr Trump was trying ahead to creating a “historic return” to the Center East.

She mentioned: “President Trump will return to re-emphasise his continued imaginative and prescient for a proud, affluent and profitable Center East, the place the USA and Center Jap nations are in cooperative relationships, and the place extremism is defeated instead of commerce and cultural exchanges.”

Robert Mogielnicki, a senior resident scholar on the Arab Gulf States Institute in Washington, advised Reuters: “The Trump administration desires this journey to be a giant deal. Which means a number of splashy deal bulletins and collaborations that may be offered as being good for America.”

In the meantime, the hit to Saudi Aramco’s earnings follows related declines at rival oil giants Shell and BP.

BP posted a 49pc drop in earnings for the primary quarter final month, whereas Shell’s earnings for a similar interval dropped by virtually a 3rd.

For Saudi Aramco, which is 81.5pc owned by the Saudi authorities, it would add to pressures on the Kingdom’s management because it battles to diversify its financial system away from fossil fuels.