Saudi Arabia Reportedly Cuts Production by 2 Million Barrels Per Day in Response to Strait of Hormuz Blockade

Odaily News: According to Reuters, two sources stated that Saudi Arabia, the world's largest oil exporter, has cut its oil production by approximately 2 million barrels per day (bpd), reducing it to around 8 million bpd. This follows the country's shutdown of partial production at two major offshore oil fields. The sources indicated that although Saudi Arabia is diverting more crude oil to the Yanbu port on the Red Sea coast to bypass the Strait of Hormuz, production has fallen to around 8 million bpd after the shutdowns at the Safaniya and Zuluf offshore fields. Another source said Saudi production has dropped below 8 million bpd. These two offshore fields primarily produce heavy and medium-heavy crude oil, with a combined output exceeding 2 million bpd, while the pipeline to Yanbu mainly transports light crude. If production falls to 8 million bpd, it would represent a significant decline compared to February. In February, Saudi Arabia supplied 10.111 million bpd to the market, with production at 10.882 million bpd. Sources at the time said the February production increase was part of a contingency plan prepared in response to potential U.S. strikes on Iran and potential disruptions to Middle Eastern supply.