Saudi Output Crashes Amid Middle Eastern Conflict

Saudi Arabia's crude production plummeted in August to its lowest level since 1990, according to data reported to OPEC. The kingdom's output dropped by 1.9 million barrels per day, a staggering 23% decline from July.

This drastic decrease is largely due to regional conflict disrupting export routes. Saudi Arabia relied on Red Sea routes after the conflict with Iran effectively closed the Strait of Hormuz. However, Houthi rebels have declared a maritime embargo on Saudi ports, deterring ship operators and restricting another major export corridor.

The consequences are already being felt in oil markets. West Texas Intermediate crude oil futures jumped 3% Thursday as traders reacted to intensifying attacks on Middle Eastern shipping and energy infrastructure.