Saudi Arabia reportedly cuts production by 2 million barrels/day in response to Strait of Hormuz blockade

Deep Tide TechFlow News, March 13 — According to Reuters, two sources said that the world’s largest oil exporter, Saudi Arabia, has cut oil production by about 2 million barrels per day, down to approximately 8 million barrels per day, after shutting down parts of two major offshore oil fields. The sources stated that although Saudi Arabia is transferring more crude oil to Yanbu port on the Red Sea to avoid the Strait of Hormuz, production has dropped to around 8 million barrels per day following the closure of the Safaniya and Zuluf offshore oil fields.

Another source said that Saudi production has fallen below 8 million barrels per day. These two offshore oil fields mainly produce heavy and medium-heavy crude oil, with a combined output of over 2 million barrels per day, while the pipeline to Yanbu primarily transports light crude oil. If production drops to 8 million barrels per day, it would represent a significant decrease compared to February. In February, Saudi Arabia supplied 10.11 million barrels per day to the market, with a production of 10.88 million barrels per day. At that time, sources indicated that the increased output in February was part of an emergency plan to counter potential U.S. strikes on Iran and disruptions to Middle Eastern supply. (Jin10)