Saudi Arabia informed OPEC that its crude oil production dropped sharply in April to its lowest level since 1990, amid disruptions linked to the US-Israeli war against Iran and the closure of the Strait of Hormuz.
According to a monthly OPEC report cited by Bloomberg, Saudi production declined by 651,000 barrels per day last month, falling to 6.316 million barrels per day.
Bloomberg reported that Saudi crude production has fallen by roughly 42 per cent since February, marking the kingdom’s lowest output level since the Gulf War in 1990 following Iraq’s invasion of Kuwait.
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The decline comes amid wider disruptions affecting Gulf oil exports after Iran imposed restrictions on shipping through the Strait of Hormuz, contributing to significant production declines in Saudi Arabia, the United Arab Emirates and Iraq.
Saudi Arabia told OPEC that its market supply levels — excluding storage movements — stood slightly above production at 6.879 million barrels per day.
The OPEC report, which combines official member submissions with estimates from external secondary sources, showed total OPEC production falling by 1.727 million barrels per day during April to an average of 18.98 million barrels per day, with Saudi Arabia accounting for nearly half of the decline.
Despite the losses, Saudi Arabia partially mitigated the impact by rerouting some exports from the Gulf to the Yanbu via its east-west pipeline network.
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