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Market Chatter: Saudi Oil Output Plunges 1.9 Million b/d as Iran War Disrupts Exports

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Saudi Arabia's crude output fell 1.9 million barrels per day to 6.238 million b/d last month, its lowest since 1990 and below the previous wartime low in April, Bloomberg reported Thursday, citing an Organization of the Petroleum Exporting Countries' monthly report.

The report also points to oil moving out of storage, with supply to market at 7.122 million b/d in August, above production and suggesting an inventory drawdown. OPEC's external sources put Saudi Arabia's August production at 7.276 million b/d, only modestly below July.

Bloomberg's tanker-tracking data also showed Saudi crude exports fell about a third in August to roughly 3 million barrels a day, the report added.

OPEC output fell 640,000 b/d over the month to 19.71 million b/d, according to a Reuters survey, as the Iran war disrupted Saudi exports and a US blockade cut Iran's shipments, Reuters reported Thursday.

Seven OPEC+ members, including Russia, planned August production increases, but the Middle East conflict prevented them from raising output, the report said.

Saudi Arabia's Ministry of Energy and OPEC did not immediately reply 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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US Oil Update: Futures Gain as Ship Attacks Escalate US-Iran Conflict, Threaten Supply

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