Saudi Arabia's Crude Oil Production Drops to 30-Year Low
Due to conflicts between the US and Iran and attacks on energy infrastructure, Saudi Arabia's crude oil production has fallen to a thirty-year low while non-Gulf producers attempt to bridge the gap.
Saudi Arabia, at the center of the US-Iran conflict, has seen its crude oil production drop to its lowest level since 1990 as a result of attacks on critical energy infrastructure and ensuing disruptions.
Thirty-Year Decline in Production
Saudi Arabia, the world's largest oil exporter, has experienced a decline of 3.86 million barrels per day in crude oil production since the war began.
While hovering around 10.1 million barrels per day between November 2025 and February 2026, production fell to 7.76 million barrels per day in March and 6.24 million barrels per day in August.
Attacks on Energy Infrastructure
The Saudi Arabian Ministry of Energy announced that the East-West Pipeline, which transports crude oil from the east of the country to the Red Sea, was attacked on September 10.
Pipeline facilities in the Riyadh and Medina regions were subjected to multiple attacks, and the pipeline was temporarily shut down as a precaution.
The Role of Non-Gulf Producers
According to International Energy Agency data, non-Gulf producers have increased their daily production by 2.3 million barrels since the beginning of the conflict.
The United States recorded the largest increase at 520,000 barrels per day, followed by Brazil, Kazakhstan, Venezuela, and Nigeria.
Global Supply and Shipment Balancing
Oil flow through the Strait of Hormuz dropped to an average of 7.6 million barrels per day in August, remaining well below pre-war levels.
Saudi Arabia and the United Arab Emirates attempted to redirect crude oil as much as possible using alternative routes bypassing the strait.
Global Deficit in Markets
The International Energy Agency projects a deficit of 2.2 million barrels per day in the second quarter and 1.7 million barrels per day in the third quarter, thanks to alternative routes, increased production, and inventory drawdowns.
As production in the Gulf remains under pressure, the burden of balancing global oil markets is shifting to producers outside the Middle East.
Export Restrictions and Customer Cuts
The supply disruptions have led Saudi Aramco to halt shipments to certain Indian refineries and reduce allocation rates for European customers.
Six months into the war, oil production and exports in the Gulf region continue to remain under severe restrictions.