Saudi Oil Output Hits Lowest Level Since 1990 Amid Regional Conflict

Saudi Arabia's crude oil production plummeted to its lowest level since 1990 in August, amidst regional conflict and shipping threats. The kingdom's output dropped by 1.9 million barrels per day (bpd) to 6.23 million bpd last month, down 23 percent from July, according to an OPEC report.

The decline followed the Houthis' announcement of a 'maritime embargo' on Saudi ports at the end of July, which discouraged shipping operators and disrupted the kingdom's ability to move crude by sea. The threat pushed Saudi Arabia to use Red Sea shipping routes after the conflict between the United States and Iran effectively closed the Strait of Hormuz.

The situation has worsened this week, with the Houthis stepping up attacks on Saudi energy facilities, raising concerns over shipping through the Bab el-Mandeb Strait. The disruption has also affected oil markets, with crude oil prices rising by about 3 percent on Thursday as traders became increasingly concerned that attacks on shipping could disrupt global supplies.