Saudi Oil Output Plunges Amid Disruptions and Rising Tensions
Saudi Arabia's oil output has plummeted to its lowest level since 1990 due to disruptions on two of its principal maritime export routes. The kingdom told OPEC that production fell by 1.9 million barrels per day last month to 6.238 million bpd, according to the group's monthly report.
This marks a new low since the US and Israel launched strikes against Iran in late February. Saudi Arabia has been caught between restricted traffic through the Strait of Hormuz and a renewed war by Yemeni Ansarullah movement against Saudi-backed government forces. The pressure is visible in shipping data, as provisional tanker tracking compiled by Bloomberg shows Saudi crude exports falling by around a third in August.
Riyadh told OPEC that its 'supply to market' stood at 7.122 million bpd, suggesting that the kingdom tapped inventories to compensate for reduced production. However, OPEC's separate estimate based on external secondary sources was substantially higher, putting Saudi output at 7.276 million bpd in August.