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Fitch Affirms Saudi Aramco at 'A+' with Stable Outlook

 Saudi Aramco logo (AFP)
 Saudi Aramco logo (AFP)
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Fitch Affirms Saudi Aramco at 'A+' with Stable Outlook

 Saudi Aramco logo (AFP)
 Saudi Aramco logo (AFP)

Fitch Ratings on Tuesday affirmed Saudi Aramco’s long-term issuer default ratings at “A+” for both foreign- and local-currency ratings, with a stable outlook.
In a statement, Fitch Ratings praised Aramco's sustainable dividend policy. It said the company delivered a sustainable and progressive base dividend of $81.2 billion in 2024.
“Saudi Aramco is one of the world's largest oil producers and Saudi Arabia's national oil company,” Fitch Ratings said. “Its financial profile benefits from strong pre-dividend free cash flow (FCF) generation and conservative financial policies.”
Also, Aramco’s business profile is characterized by large-scale production, vast reserves, low production costs and expansion into downstream and petrochemicals, the rating company noted.
According to Fitch Ratings, Saudi Aramco has the flexibility to reconsider its dividend commitment if oil prices fall or capex is higher than we currently assume.
It explained that Saudi Aramco’s rating reflects its large reserve and production base, and a robust financial profile characterized by strong profitability, liquidity and market access.

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Oil Edges up on Potential US Tariff Exemptions on Cars, Pick-up in China Crude Imports 

A general view of oil tanks located near the Teltowkanal canal in Berlin, Germany, 10 April 2025. (EPA)
A general view of oil tanks located near the Teltowkanal canal in Berlin, Germany, 10 April 2025. (EPA)
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Oil Edges up on Potential US Tariff Exemptions on Cars, Pick-up in China Crude Imports 

A general view of oil tanks located near the Teltowkanal canal in Berlin, Germany, 10 April 2025. (EPA)
A general view of oil tanks located near the Teltowkanal canal in Berlin, Germany, 10 April 2025. (EPA)

Oil prices inched higher on Tuesday, supported by new tariff exemptions floated by US President Donald Trump and a rebound in China crude oil imports in anticipation of tighter Iranian supply.

Brent crude futures gained 12 cents, or 0.2%, to $65 per barrel by 0350 GMT, while US West Texas Intermediate crude was up 13 cents, or 0.2%, to $61.66.

"Trump granted exemptions on electronic tariffs and signaled an auto tariff relief, both of which are seen as setbacks from the previously announced import levies, hence, providing some relief to risk assets, including oil," said independent market analyst Tina Teng.

"However, the rally in stocks and growth-sentiment commodities is skeptical, as his policy is unpredictable."

In the latest development in Trump's whipsawing trade war, he said he was considering a modification to the 25% tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places.

The vacillating US trade policies have created uncertainty for global oil markets and pushed OPEC on Monday to lower its demand outlook for the first time since December.

The Trump administration had announced on Friday that it would grant exclusions from tariffs on smartphones, computers and some other electronic goods, most of which are imported from China. That drove both oil benchmarks to settle up slightly higher on Monday.

On Sunday, Trump said he would announce the tariff rate on imported semiconductors over the next week and a Monday Federal Register filing showed the administration had begun an investigation into imports of semiconductors on April 1.

"The market is digesting fast-moving policy developments on the tariff front, while balancing them with nuclear talks between the US and Iran," said ING analysts in a Tuesday note.

"Clearly, the market is more focused on tariffs and what they mean for oil demand."

US Energy Secretary Chris Wright said on Friday the United States could stop Iranian oil exports as part of Trump's plan to pressure Tehran over its nuclear program.

Also supporting prices were data on Monday showing that China's crude oil imports in March were up nearly 5% from a year earlier, as arrivals of Iranian oil surged in anticipation of tighter US sanctions enforcement.