Houthi Drone Attack Threatens Global Oil Supply Amid Saudi Pipeline Shutdown

Saudi Arabia's oil output has been severely impacted by the ongoing war, with the country's production falling to its lowest level in over three decades. According to a recent report from Saudi Arabia to OPEC, their output dropped to 6.2 million barrels per day in August, down from 10.9 million bpd in February.

The situation has been exacerbated by the shutdown of the east-west pipeline, which was damaged by drone attacks. The pipeline carries Saudi crude from the country's oil fields in the east to Yanbu on the Red Sea and is a crucial route for maintaining exports.

Industry sources suggest that Saudi Arabia's stocks at the Red Sea port of Yanbu could run out within days if the pipeline remains offline. With an estimated storage capacity of around 35 million barrels, Yanbu currently holds only enough crude to maintain exports for five to seven days.