Saudi Oil Production Drops to Lowest Level Since 1990 Amid US-Iran Tensions
Saudi Arabia's crude oil production dropped to its lowest level since 1990 in August, according to data reported to OPEC. The kingdom's output fell by 1.9 million barrels per day to 6.238 million barrels per day. This decline is even sharper than the previous low reached in April and reflects the impact of the prolonged Iran conflict on Middle East energy producers.
The drop follows several months of recovery for OPEC leader Saudi Arabia, which has been disrupted by renewed hostilities between the US and Iran. Tanker-tracking data compiled by Bloomberg showed that Saudi crude exports fell by approximately one-third in August to around 3 million barrels per day. This supports the kingdom's reported production figures.
The higher supply figure compared to production suggests that Saudi Arabia may have used some of its inventories. OPEC's monthly report also includes estimates from external firms known as secondary sources, which placed Saudi production in August at 7.276 million barrels per day, showing only a modest decrease from the previous month.