Aramco is earning more, but this is not necessarily good news for Saudi Arabia
Last week, the Saudi energy giant reported a profit of about $34 billion in the first quarter of the year.
On the surface, a reason to celebrate, but according to Cyril Widdershoven, a veteran geopolitical analyst, this profit does not come from a healthy market but from a crisis. In other words, Saudi Arabia is not earning because the system is strong, but because the system is under pressure.
Energy prices are high due to war, shipping disruptions, and increasing risk in Hormuz. But behind these profits lies a more problematic picture: Aramco's cash flow is eroding, Saudi Arabia is increasingly relying on emergency infrastructures like the East-West pipeline and Yanbu, and its alternative export routes are operating under pressure.
