Saudi Arabia's crude oil production fell to 6.24 million barrels per day in August, marking the lowest reported level since 1990, as the protracted war between the United States and Iran continued to disrupt energy flows across the Middle East.
Riyadh reported directly to OPEC that its output fell by about 1.9 million barrels per day, from 8.1 million barrels per day in July. According to published data, Saudi production was 7.1 million barrels per day in June, before rising sharply in July, but that recovery was reversed in August.
The decline came despite plans by Saudi Arabia and other OPEC+ countries to increase production during this period. OPEC+ had previously approved a production increase, but the escalation of the conflict and problems with shipping have limited the ability of producers to get oil to market.
The drop in Saudi production highlights the impact of the US-Iran war beyond the direct conflict zone, with disruptions affecting both the Persian Gulf and alternative export routes through the Red Sea.
Saudi Arabia has increasingly relied on its Western export infrastructure, particularly the Red Sea port of Yanbu, while uncertainty around the Strait of Hormuz has complicated traditional shipping routes from the Gulf.
However, even this alternative corridor has come under pressure. Yemen's Iran-backed Houthis have threatened and attacked ships and infrastructure linked to Saudi Arabia, increasing the risk to oil shipments through the Red Sea and the Bab el-Mandeb Strait. The attacks have hit areas near Yanbu and the Jazan refinery.
Following these developments, maritime traffic and oil cargoes from Saudi Red Sea ports have declined significantly. According to data from ship tracking companies, crude oil exports from Yanbu have fallen to very low levels, while some ships have limited their tracking due to the risk of attacks.
According to the IEA's estimates, Saudi Arabia's crude oil supply fell to about 6 million barrels per day in August, while the figure reported by Riyadh itself to OPEC was 6.238 million barrels per day. This difference is related to the way production and actual supply are measured in the market.
The conflict has also put significant pressure on shipping through the Strait of Hormuz, one of the world's most important routes for energy exports. Disruptions in the corridor and attacks on ships have raised fears of a wider supply shortage.
Meanwhile, Saudi Arabia reported that it supplied the market with about 7.1 million barrels per day in August, a figure significantly higher than its reported production of 6.24 million barrels per day. This shows that the country is also using available reserves to compensate for the decline in production and maintain supplies in the market.
The disruption of Saudi supplies and uncertainty over shipping routes have added to pressure on the global oil market. Brent crude prices surged above $100 a barrel this week, while fighting and attacks on shipping have raised fears of a wider energy crisis.
The International Energy Agency has warned that prolonged disruptions in the Middle East could deepen the global supply deficit. According to the IEA, global oil production is expected to fall by about 5.7 million barrels per day during 2026, while full supply recovery could be delayed until 2027.
