Saudi Arabia’s crude oil production fell in August to its lowest level since 1990, according to data the kingdom submitted to OPEC and cited by Bloomberg.
The drop came amid a renewed conflict between the US and Iran, which disrupted oil export routes from the region. Riyadh told the OPEC secretariat that output declined by 1.9 million barrels a day to 6.238 million barrels per day.
That is even lower than the previous trough recorded in April, which had itself been the lowest production level Saudi Arabia had reported since the start of the Gulf War. The latest decline followed several months of output recovery and highlights the impact of the prolonged conflict with Iran on Middle Eastern energy producers.
Oil markets have reacted to the supply risk. Brent crude futures climbed above $100 a barrel this week as attacks on oil tankers in the Persian Gulf resumed.
Bloomberg’s tanker-tracking data showed that Saudi oil exports fell by about one-third in August to roughly 3 million barrels a day. That trend is broadly consistent with the kingdom’s official production figures.
Saudi Arabia also told OPEC that crude supplies delivered to the market in August, including oil released from strategic reserves, totaled 7.122 million barrels a day. Supplies running above production suggest the kingdom may have drawn on part of its stockpiles.
OPEC’s monthly report also includes estimates from outside groups known as secondary sources. Their figures put Saudi oil production in August at 7.276 million barrels a day, indicating only a slight decline from the previous month.
