Saudi Oil Output Collapses to 6.24 Million Barrels per Day Amid US-Iran Conflict

Saudi Arabia's oil output plummeted to 6.24 million barrels per day in August, its lowest level since the Gulf War began in 1990. This marks a steep decline from July's production of 8.1 million barrels, with output dropping by approximately 1.9 million barrels.

The drop is attributed to the ongoing conflict between the US and Iran, which has disrupted energy flows across the Middle East. Saudi Arabia was producing over 10 million barrels per day before the war began, a gap that now stands at nearly half its pre-war levels.

The kingdom's deliveries to the market actually exceeded its production in August, with 7.1 million barrels delivered compared to 6.24 million produced. This suggests that Saudi Arabia is drawing down its own stockpiles and tapping reserves to meet contractual obligations.