Saudi Aramco, the largest oil company globally, is experiencing financial strain due to challenges in maintaining dividend payouts amidst limited oil production and fluctuating prices.

With oil priced at $75 per barrel and production constrained by OPEC+ cuts, the state-owned company has paid $93.2 billion in dividends year-to-date, while its free cash flow stands at $63.7 billion.

This has resulted in a daily cash burn exceeding $100 million, leading Aramco to finance shareholder distributions through debt. Analysts caution that even with a strong balance sheet, the company may not be able to sustain this financial model indefinitely, raising concerns about potential future dividend reductions.