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Saudi Arabia’s oil production has fallen to its lowest this year after Iran-backed Houthi rebels in Yemen threatened shipments from the kingdom’s west coast.
Saudi Arabia told Opec it produced 6.2mn barrels a day in August, the lowest monthly figure in 2026 and 23 per cent lower than in July, according to a report published by the oil cartel on Thursday.
Yemen’s Houthi rebels announced a “maritime embargo” against Saudi Arabia’s ports at the end of July, deterring ship operators from the area and reducing the country’s ability to export.
With limited capacity to store oil, Saudi Arabia has been forced to reduce its output. Crude exports fell to about 3.1mn b/d in August, down from 5.1mn b/d in July, according to Kpler, its lowest level since at least 2013.
The Houthis’ decision to enter the Middle East conflict has hit the kingdom’s main workaround for exporting oil without shipping through the Strait of Hormuz.
Soon after the conflict erupted in late February, state-run Saudi Aramco started piping as much crude as possible to the Red Sea port of Yanbu for export.
This helped the country partially restore production to about 80 per cent of its normal volumes. As Opec’s largest producer and the world’s biggest oil exporter, Saudi Arabian output has an outsized impact on oil markets.
Analysts say curtailed Red Sea exports are set to continue as the Houthis have stepped up their strikes on Saudi oil this week, hitting multiple energy facilities in a wave of attacks on Tuesday.
In response, Brent crude, the international benchmark, rose above $100 a barrel on Wednesday for the first time since July. It was trading at about $102 a barrel on Thursday.
