OPEC Output Drops in August Amid Disruptions to Saudi Oil Exports
OPEC crude oil production fell by 900,000 barrels per day in August, ending a two-month recovery. The decline was primarily driven by reduced output from Saudi Arabia due to disruptions at both the Strait of Hormuz and Red Sea export routes caused by ongoing conflicts between Washington and Tehran. Attacks on tankers and threats from Yemen's Houthi rebels have limited Saudi exports, which dropped 1.12 million barrels per day compared to July. The decline in Saudi production was partially offset by increases in Iraq and Venezuela. Iraqi output rose by 270,000 barrels a day, while Venezuelan crude reached a seven-year high of 1.23 million barrels a day as the U.S. exerts more control over its oil industry. The situation is contributing to rising Brent crude prices near $100 per barrel. OPEC+ members have agreed to maintain output targets for October and are preparing an audit by late September to assess each member's physical production capacity, which will inform future quotas in 2027.
Topics: Hormuz Strait oil production decline OPEC Red Sea exports Saudi Arabia