&imwidth=800&imheight=600&format=webp&quality=medium "Saudi oil production falls to 8 million bpd after 20% cut amid Iran war: Report")
Saudi Arabia has reduced its oil production by around 2 million barrels per day, bringing output down to roughly 8 million barrels per day (bpd), according to two sources cited by news agency Reuters. The fall follows the shutdown of two major offshore oil fields amid escalating tensions linked to the ongoing conflict involving Iran. Oil producers across the Gulf have been forced to halt significant volumes of production after shipping through the Strait of Hormuz was disrupted. The vital waterway between Iran and Oman has effectively been blocked since the United States and Israel launched airstrikes on Iran on February 28.
Iran has warned that the disruption could drive global oil prices as high as $200 per barrel. To maintain exports, Saudi Arabia has been diverting more crude to Yanbu, a Red Sea port that bypasses the Strait of Hormuz. However, production has still fallen sharply after the shutdown of the Safaniya and Zuluf offshore fields, one source said. Another source indicated Saudi output may have dropped below 8 million bpd. Together, the two fields produce more than 2 million bpd, primarily consisting of heavy and medium-heavy crude. In contrast, the pipeline route to Yanbu is mainly designed to transport lighter grades of crude oil.
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State energy giant Saudi Aramco was unavailable for a comment on the production cuts. The fall marks a significant drop from February levels, when Saudi Arabia supplied 10.111 million bpd to the market and produced 10.882 million bpd. That earlier production increase was reportedly a precautionary measure in case potential US strikes on Iran disrupted regional supply.
According to the International Energy Agency (IEA), Gulf countries, including Iraq, Qatar, Kuwait, the United Arab Emirates, and Saudi Arabia, have collectively reduced oil production by at least 10 million bpd. The agency warned that these losses could grow further if shipping routes in the region are not quickly restored.
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Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.
