Saudi Oil Production Plummets to 1990 Lows Amid US-Iran Conflict
Saudi Arabia's oil production has plummeted to its lowest level since 1990 due to disruptions caused by the US-Iran war and Houthi attacks on Red Sea shipping. According to OPEC data, Saudi crude output dropped to 6.24 million barrels per day in August, a decline of roughly 1.9 million barrels from July's 8.1 million. This marks a reversal of a temporary recovery seen during the previous month.
The production collapse has tightened global crude markets and propelled prices upward, with Brent crude climbing above $100 per barrel this week as renewed US-Iran hostilities intensified concerns over Middle Eastern supply stability. Saudi Arabia's reported production level is significantly lower than its actual supplies to markets in August, which stood at 7.1 million barrels per day.
The Red Sea corridor has been severely impacted by the Houthi attacks, with estimates suggesting that loadings at Yanbu have dropped between 1.5 and 3.2 million barrels per day. The conflict has also led to a maritime blockade, threatening the kingdom's ability to bypass instability around the Strait of Hormuz.