Saudi Oil Output Plummets to Lowest in 36 Years Amid Conflict-Related Disruptions

Saudi Arabia's oil production has plummeted to its lowest in 36 years as the country faces disruptions to its main export routes due to ongoing conflicts. According to a report by Bloomberg, Saudi Arabia's oil output fell by 1.9 million barrels per day (bpd) to 6.238 million bpd in August, the lowest since 1990.

The kingdom's crude exports also declined to their lowest in over a decade, with only 3.2 million bpd exported in August, down from 4.1 million bpd in July. The decline is attributed to the recent attacks by Iran and Yemen's Houthi militia on Saudi oil facilities and export routes.

The Strait of Hormuz, which accounts for a significant portion of Saudi Arabia's crude exports, has been choked off since February 28 due to retaliatory measures against US and Israeli strikes on Iranian targets. In response, the kingdom diverted much of its crude through the East-West Pipeline to the Red Sea port of Yanbu.

However, Yemen's Houthi rebels have recently declared a maritime blockade of Saudi Arabia, further constraining the kingdom's options for exporting its crude. The group has also attacked several oil facilities in recent days, causing fires and temporary operational shutdowns.