Saudi Arabia's oil production collapsed to its lowest level in over three decades

econews. Saudi Arabia's crude oil production fell to its lowest level since 1990 in August, driven by attacks on the kingdom's energy infrastructure and export routes stemming from the ongoing conflict with Iran.

Riyadh reported to OPEC that production declined 1.9 million barrels a day to reach 6.238 million barrels a day in August, according to Bloomberg. That figure is lower than a previous wartime low reached in April, which was itself the lowest production level the kingdom had reported since the start of the Gulf War.

The kingdom's output before the Iran war stood at more than 10 million barrels a day, according to The Wall Street Journal. In normal circumstances, Saudi Arabia competes with Russia for the position of second-largest crude producer in the world behind the United States.

Houthi militants, aligned with Iran, have targeted Saudi oil tankers and storage facilities, and a major refinery was left damaged and out of service, according to the Journal. The Houthis declared a blockade of Saudi vessels in the Red Sea in late July, putting the kingdom's primary export corridor at risk following the Strait of Hormuz's effective closure. This week, the Houthis captured the port city of Mokha on Yemen's western coast.

Provisional tanker-tracking data cited by Bloomberg showed Saudi crude shipments declined around 3 million barrels a day in August, representing approximately a third less than prior levels. The kingdom also told OPEC that its crude "supply to market" — a figure that includes oil moved from storage — came in at 7.122 million barrels a day in August, exceeding its production total and pointing to possible draws on inventories.

A separate assessment compiled by OPEC from external firms placed Saudi production in August at 7.276 million barrels a day, only modestly below the prior month's figure, according to Bloomberg.

Brent crude futures climbed past $100 a barrel this week amid fresh attacks on oil tankers in the Persian Gulf.

OPEC also faces internal tensions beyond the production disruptions. Venezuela, a founding member of OPEC, is considering an exit from the organization after the Trump administration reached a deal securing majority U.S. control over a significant share of the country's oil reserves, according to Bloomberg. Iraq is meanwhile pressing for a higher assessment of its production capacity.