Saudi Oil Output Plunges Amid Middle East Conflicts

Saudi Arabia's oil production has hit its lowest level since 1990, plummeting to 6.238 million barrels per day in August due to conflicts across the Middle East that have squeezed the kingdom's export routes.

The reduction of nearly 2 million barrels per day is attributed to disruptions on both principal maritime export routes for Saudi Arabia: the Strait of Hormuz and the Bab al-Mandeb Strait.

Riyadh told OPEC that its supply to market, including crude drawn from storage, stood at 7.122 million bpd in August, suggesting the kingdom tapped inventories to compensate for reduced production.

OPEC's separate estimate based on external secondary sources was substantially higher, putting Saudi output at 7.276 million bpd in August.

The pressure is already visible in shipping data, as provisional tanker tracking compiled by Bloomberg shows Saudi crude exports falling by around a third in August.