Saudi Oil Supplies Plummet to Decades-Low Amid Yemen Conflict

The International Energy Agency (IEA) has reported that Saudi Arabia's crude oil supplies have reached their lowest level in over three decades. According to the agency, Saudi's crude oil supplies decreased by 2.3 million barrels per day on a monthly basis, reaching 6 million barrels per day in August.

This decline is attributed to the operations carried out by Sana'a against Saudi oil facilities and the naval blockade on the Kingdom's navigation. The IEA's report noted that the Yemeni Armed Forces have targeted ships transiting the Bab Al-Mandeb Strait, the Jazan refinery, and shipping movement near Yanbu.

The agency's assessment of Saudi oil supplies in August shows a decrease from Riyadh's estimates submitted to the Organization of the Petroleum Exporting Countries (OPEC). The Kingdom informed OPEC that it would supply 7.122 million barrels per day during the month, but the IEA estimated this figure at 6 million barrels per day.

The term 'supply' in the oil industry refers to the amount of crude reaching the market, including shipments drawn from inventories and domestic consumption within refineries and power plants. Based on these data, the International Energy Agency has lowered its forecast for Saudi crude supplies during 2026 by 885,000 barrels per day.