OPEC crude oil production falls 900,000 barrels per day in August as Saudi Arabia curbs output

OPEC’s collective crude output dropped by 900,000 barrels per day in August, averaging 19.91 million bpd, according to a Bloomberg survey. The culprit was overwhelmingly Saudi Arabia, whose production fell by just over 1 million bpd to 6.98 million bpd, its lowest level since May. The kingdom’s crude exports, tracked via tanker movements, tumbled by nearly one-third to 3.03 million bpd. Export route disruptions drive the decline The production drop stemmed from disruptions to Saudi Arabia’s key export routes amid a resurgence of regional tensions tied to the conflict involving the United States and Iran. Attacks on tankers in the Strait of Hormuz and Houthi threats along the Red Sea and Bab el-Mandeb chokepoints have made shipping Saudi crude significantly more difficult. OPEC production had been on a two-month recovery trajectory following a brief ceasefire earlier in the summer. The broader OPEC+ coalition had also implemented its fifth consecutive quota increase of 188,000 bpd for August across seven member states. In reality, logistics and geopolitics prevented that planned increase from materializing. Iraq and Venezuela step up, but not enough Iraq posted a meaningful increase...