Oil Prices Surge as Saudi Output Collapses Amid Regional Conflict
Saudi Arabia's crude production plummeted in August to its lowest level since 1990, sparking a bullish signal for oil prices. According to OPEC, Saudi output dropped by 1.9 million barrels per day to 6.23 million, a 23% decline from July.
The kingdom also reported that its crude exports decreased to 3.1 million barrels per day in August, their lowest level since at least 2013, as regional conflict disrupted export routes. West Texas Intermediate crude oil futures jumped 3% on Thursday as traders reacted to intensifying attacks on Middle Eastern shipping and energy infrastructure.
The disruption reflects an increasingly hazardous transportation bottleneck for Saudi Arabia. The kingdom relied on Red Sea routes after the conflict with Iran effectively closed the Strait of Hormuz, but Houthi rebels have now declared a maritime embargo on Saudi ports, deterring ship operators and restricting another major export corridor.