Saudi cuts oil output to 2026 low amid Houthi threats
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- Saudi Arabia's August output fell 23% to 6.2 million bpd—its 2026 low.
- Houthi maritime threats cut crude exports nearly in half to ~3.1 million bpd.
- Red Sea disruptions and facility attacks pushed Brent crude past $102/bbl.
Saudi Arabia reported its lowest monthly oil production of 2026 to OPEC, cutting output to 6.2 million barrels per day in August following threats from Yemen's Houthi rebels against shipping off the kingdom's west coast.
Data published in OPEC's report on Thursday showed the August figure represents a 23% decline from the 8.1 million bpd produced in July.
The sharp contraction follows the Houthis' announcement of a "maritime embargo" against Saudi ports at the end of July, which effectively deterred commercial vessel operators from accessing west coast terminals and severely impaired the kingdom's export capacity.
Storage limits force output cuts
Constrained by limited domestic storage capacity, the world's largest crude exporter was forced to scale back production as export channels filled.
According to data from Kpler, Saudi crude exports dropped from 5.1 million bpd in July to approximately 3.1 million bpd in August—the lowest export volume recorded since at least 2013.
The Houthi maritime campaign has directly targeted Saudi Arabia's primary alternative route for bypassing the Strait of Hormuz.
Following the outbreak of regional conflict in late February, state-owned Saudi Aramco had maximized crude shipments via pipeline to the Red Sea port of Yanbu, successfully restoring production to roughly 80% of normal capacity prior to the latest disruptions.
Analysts expect Red Sea exports to remain constrained as Houthi forces intensify targeting of Saudi energy infrastructure, including a wave of attacks on multiple facilities earlier in the week.
In response to sustained supply disruptions, international benchmark Brent crude surged past $100 a barrel on Wednesday for the first time since July, holding around $102 per barrel on Thursday.
