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Market Chatter: Saudi Oil Output Falls to Lowest Since 1990 as Gulf Conflict Hits Exports

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Saudi Arabia cut crude production to 6.316 million barrels per day in April, the lowest level since 1990, Bloomberg reported Wednesday.

Saudi Arabia reportedly told OPEC that its output dropped another 651,000 b/d in April, extending total production losses since February to 42%.

The decline marked Saudi Arabia's weakest production level since the Gulf War began after Iraq invaded Kuwait 36 years ago.

The conflict involving Iran disrupted Persian Gulf shipments and sharply reduced exports from major producers, including Saudi Arabia, Iraq and the UAE.

Saudi Arabia told OPEC that oil supplied to the market reached 6.879 million b/d, slightly above its reported crude production level.

Secondary source estimates compiled by OPEC showed the group's total output fell by 1.73 million b/d in April to 18.98 mmb/d.

The report said secondary estimates placed Saudi crude production at 6.77 mmb/d, slightly above figures submitted directly by Saudi Arabia.

The decision followed disagreements with Saudi Arabia over production quotas and regional political issues, according to the report.

OPEC rules will keep the UAE as a formal member until Jan. 1 despite the planned exit.

Kuwait recorded the second-largest production decline in April as output fell by roughly half to 600,000 b/d, leaving production below one-quarter of prewar levels, according to the report.

Saudi Arabia reduced some export losses by redirecting crude shipments through pipelines linked to the Red Sea, while the UAE also used alternative export routes.

OPEC lowered its 2026 global oil demand growth forecast to 1.2 million barrels per day from 1.4 million, while the International Energy Agency expects demand to shrink by 420,000 barrels per day this year.

Saudi Arabia's Minister of Energy and OPEC didn't immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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