Saudi Oil Output Plummets to Lowest Since 1990 Amid US-Iran Conflict
Saudi Arabia's crude oil production plummeted to its lowest level since 1990 in August, amidst ongoing US-Iran tensions. The kingdom reported a staggering decline of around 1.9 million barrels per day from July's output of 8.1 million barrels per day.
The drop in Saudi production is despite plans by the OPEC+ producer group to increase output during the month. However, disruptions caused by the conflict have affected both the Persian Gulf and alternative export routes through the Red Sea.
Saudi Arabia has relied heavily on its western export infrastructure, particularly the Red Sea port of Yanbu, due to instability around the Strait of Hormuz. The kingdom's crude and condensate loadings from Yanbu fell to a six-month low in August, with estimates ranging from 1.5 million barrels per day to 3.2 million barrels per day.
The conflict has also put pressure on shipping through the Strait of Hormuz, with vessel transits falling to just seven on Wednesday, compared to an average of 14 over a 10-day period.