Saudi Oil Production Falls to 36-Year Low Amid Iran War Disruptions

Saudi Arabia’s crude oil production fell to 6.24 million barrels per day in August, the lowest level since 1990, as the ongoing US-Iran conflict continued to disrupt key oil export routes.

Saudi Arabia reported the August production figure to OPEC, representing a decline of nearly two million barrels per day from July and more than three million barrels below pre-war production levels of above 10 million barrels per day.

The sharp drop has been attributed to attacks and security threats around the Strait of Hormuz, a vital route for Saudi oil exports, as well as a naval blockade of Saudi Red Sea ports by Yemen’s Houthi movement, also known as Ansarullah.

The disruptions have made it increasingly difficult for Saudi Arabia to export crude and store surplus production.

Despite the decline in output, Saudi oil supply to the market remained around 7.1 million barrels per day in August, indicating that the kingdom relied on existing inventories to maintain deliveries.

Independent estimates by the International Energy Agency put actual Saudi oil supply even lower, at around six million barrels per day, citing additional damage caused by Houthi attacks on energy infrastructure and shipping.