Saudi crude production hits 36-year low at 6.238 million barrels per day in August
Saudi Arabia's crude output dropped significantly in August, falling to its lowest level since 1990 amidst export disruptions involving Iran and the United States.
OPEC's September report details Saudi Arabia's crude production fell to 6.238 million barrels a day in August, marking the lowest monthly figure recorded since 1990. This reduction represented a decrease of 1.9 million barrels compared to July's output of 8.135 million barrels per day. The decline also surpassed the wartime low set in April, which stood at 6.316 million barrels per day following restrictions on shipments through the Persian Gulf. Officials in Riyadh attributed the drop to fighting between the United States and Iran that disrupted export routes affecting both the Strait of Hormuz and Red Sea pathways. Consequently, Saudi Arabia must now manage output based on these physical export constraints rather than solely adjusting production targets with its OPEC+ partners. Despite this decline in wellhead output, crude supply available to the market totaled 7.122 million barrels per day in August. This figure remained lower than July's 7.417 million barrels but exceeded August production by nearly a million barrels, indicating that inventory stocks supported deliveries while physical output decreased. Secondary assessments compiled from external industry sources estimated Saudi production at approximately 7.276 million barrels per day for the same month.
