Saudi Arabia Begins Production Cuts, Analysts Say It's Just Supply Reconfiguration

Odaily News According to foreign media reports, informed sources stated that Saudi Arabia has begun reducing oil production due to the near blockade of the Strait of Hormuz and the rapid filling of storage facilities. Saudi state-owned enterprise Saudi Aramco declined to comment on this. Saudi Arabia's daily oil production is approximately 10 million barrels, of which about 7 million barrels are exported. Saudi Aramco has redirected some crude oil shipments from the usual route through the Strait of Hormuz to the Red Sea port of Yanbu, but pipeline capacity is insufficient to fully replace the original export scale. Energy Intelligence Group reporter Amena Bakr commented on the news, stating that the report is inaccurate. The production reduction occurred at oil fields that do not produce Arab Light crude and cannot export via the Yanbu port. It is essentially a reconfiguration of supply, not a production cut. Saudi Aramco is also exporting from storage facilities outside of Saudi Arabia. (Jin10)