OPEC Output Sinks as Saudi Exports Plummet Amid Strait of Hormuz Tensions

OPEC's oil output declined in August due to disruptions in Saudi Arabia's exports. The group's total production fell by 900,000 barrels a day to 19.91 million barrels per day. This drop is attributed to renewed friction between Washington and Tehran, as well as attacks on tankers transiting the Strait of Hormuz.

The decline in Saudi oil output was particularly significant, dropping by 1.12 million barrels a day to 6.98 million barrels a day, which is the lowest since May. The kingdom's observed crude exports fell by about one third to 3.03 million barrels a day.

However, there were some small offsets in August, with Iraq increasing its output by 270,000 barrels a day and Venezuela adding 70,000 barrels a day. This came as Venezuela is considering an exit from OPEC, just months after the United Arab Emirates' departure.