Saudi Crude Output Hits Lowest Level Since 1990 Amid Iran Conflict

Saudi Arabia's crude oil production plummeted to its lowest level since 1990 in August, according to data reported by Riyadh to OPEC. The kingdom's output fell by a significant 1.9 million barrels per day to 6.238 million barrels per day. This decline marks an even sharper drop than the previous low reached in April, which was the lowest production level reported by Saudi Arabia since the start of the Gulf War.

The decline comes as renewed hostilities between the US and Iran disrupted export routes from the region. The conflict has had a ripple effect on Middle East energy producers, leading to a sharp drop in oil exports. In fact, Saudi crude exports fell by approximately one-third in August to around 3 million barrels per day.

The kingdom's reported production figures suggest that it may have used some of its inventories to meet market demand. According to OPEC's monthly report, Saudi Arabia's crude supply to the market, including oil drawn from storage tanks, reached 7.122 million barrels per day in August.