Saudi oil output hits lowest since 1990 on conflict disruptions

Saudi Arabia's crude oil production fell to 6.238 million barrels per day in August, the lowest level since 1990, as attacks by Iranian forces and Houthi militants have severely disrupted the kingdom's key maritime export routes. The figure, reported to OPEC, represents a decline of 1.9 million barrels per day from the previous month and marks the second time this year the kingdom has set a multi-decade production low. The production slump is directly linked to the ongoing conflict in the region. Since late February, the Strait of Hormuz, a critical chokepoint for global oil supply, has become a threat zone due to attacks by Iran's Islamic Revolutionary Guard Corps. In response, Saudi Arabia diverted much of its crude through its East-West Pipeline to the Red Sea port of Yanbu. However, in July, Yemen's Houthi rebels declared a maritime blockade of Saudi Arabia, attacking ships and disrupting traffic through the Red Sea and the Bab el-Mandeb Strait, further constraining the kingdom's export options. Saudi crude exports fell to approximately 3.2 million barrels per day in August, the lowest level in over a decade.