Saudi Aramco’s voluntary 1 million bpd production cuts have reduced its global market share to 12.1% (from 12.8% in 2024), even as Q1 earnings slightly exceeded expectations. The strategic gambit shows mixed results:
Market Share Shifts:
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Russia: Gained 1.8% share in Europe/China
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U.S. Shale: Added 600K bpd capacity
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Iraq: Boosted exports by 9%
Financial Trade-Offs:
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Higher prices (+$2.10/bbl premium) offset volume losses
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But long-term contracts down 11% as buyers diversify
Executive Dilemma:
“Maintaining price discipline versus losing shelf space is our existential challenge,” confessed an Aramco strategist anonymously.
