Saudi Oil Output Hits Lowest Since 1990 Amid Middle East Supply Disruptions

Saudi Arabia's oil production has plummeted to its lowest level since 1990, according to reports. The country informed OPEC that its output fell to 6.316 million barrels per day in April, a significant decrease of 651,000 barrels per day from the previous month.

This decline marks a notable 42% reduction from February levels and reflects ongoing supply constraints in the Middle East. The region is experiencing broader supply disruptions, influenced by regional conflicts such as the ongoing Iran war.

OPEC+ has decided to maintain October production quotas unchanged despite previous increases, indicating a stable policy environment in the face of these disruptions. Market participants suggest that the significant drop in Saudi oil production could indicate a potential supply constraint, possibly leading to higher oil prices.