In August, Saudi Arabia reported crude oil production of 6.238 million barrels per day, the lowest level recorded since 1990. This figure represents a decline of 1.9 million barrels per day compared to previous levels, marking the second multi-decade low for the kingdom this year.
The production drop is attributed to the ongoing conflict between the US and Iran, which has impacted key maritime routes. The Strait of Hormuz and the Bab el-Mandeb strait have become active threat zones due to actions by Iranian forces and Houthi militants, disrupting global oil supply chains.
Saudi crude exports also reached a decade-long low in August, falling to approximately 3.2 million barrels per day. This is a significant decrease from the levels observed just a few years ago, when exports consistently exceeded 7 million barrels per day.
Data provided to OPEC indicates that Saudi Arabia's market supply in August reached 7.122 million barrels per day. This figure exceeds actual production by nearly 900,000 barrels per day, suggesting that the country is utilizing stored crude inventories to maintain supply levels.
