Saudi Oil Output Plummets Amid Houthi Threats

Saudi Arabia's August oil output plummeted to its lowest level this year, falling 23% to 6.2 million barrels per day (bpd) in response to Houthi threats against shipping off its west coast.

The Houthis' announcement of a 'maritime embargo' at the end of July effectively deterred commercial vessel operators from accessing Saudi ports, severely impairing the kingdom's export capacity and forcing storage limits.

With domestic storage capacity constrained, the world's largest crude exporter was forced to scale back production as export channels filled up. As a result, Saudi crude exports dropped from 5.1 million bpd in July to approximately 3.1 million bpd in August.

The sharp contraction in oil output and exports pushed Brent crude past $102 per barrel on Wednesday for the first time since July.