Saudi Oil Production Collapse Sends Crude Prices Soaring Past $100
Oil prices have soared past $100 per barrel as Saudi Arabia's oil production plummeted to its lowest level since the 1990 Gulf War. The kingdom reported a decline of 1.9 million barrels per day in August, with output falling to 6.238 million barrels per day.
The drop reflects a combination of factors, including Houthi attacks on Saudi energy infrastructure and the closure of the Strait of Hormuz, which has forced the kingdom to reroute exports through the Red Sea.
Iran's production has also cratered, with Mirae Asset Securities estimating output at 2.41 million barrels per day in August, down roughly 29% from February levels.
The supply disruption has sent both Brent and WTI crude futures soaring, with Brent settling up $6.42, or 6.34%, at $107.63 a barrel, and WTI jumping $6.43, or 6.69%, to close at $102.48.