CrudeThursday, 14 May 2026·India
Saudi Oil Production Drops to Lowest Level Since 1990 Amid Gulf Supply Disruptions
Saudi Arabia’s crude oil production declined further in April, reaching its lowest level in more than three decades as the ongoing Iran war continued disrupting energy exports across the Persian Gulf.
According to OPEC’s latest monthly report, Saudi Arabia informed the group that its crude production fell by around 651,000 barrels per day from March levels, bringing total output down to nearly 6.316 million barrels per day.
The latest figures indicate that Saudi oil production has dropped by roughly 42% since February, when regional tensions and shipping disruptions began heavily impacting Gulf energy flows.
The broader crisis has significantly reduced oil supplies from several major Gulf producers, including Saudi Arabia, the UAE, and Kuwait, while also contributing to higher fuel prices and growing concerns about the global economy.
Secondary-source estimates in the same OPEC report showed that total OPEC production declined by approximately 1.727 million barrels per day in April, bringing the group’s output down to around 18.98 million barrels per day. Saudi Arabia accounted for a major portion of the overall reduction.
Kuwait also experienced substantial production losses, with output reportedly falling by nearly half to around 600,000 barrels per day.
Despite the severe disruptions, Saudi Arabia has managed to partially reduce the impact on exports by redirecting some crude shipments through pipeline networks connected to the Red Sea instead of relying solely on Gulf routes.
Meanwhile, the UAE recently confirmed plans to exit OPEC following long-standing disagreements with Saudi Arabia regarding production policies and broader regional political matters.
Separately, OPEC lowered its global oil demand growth forecast for 2026 to 1.2 million barrels per day. However, the organization’s outlook remains significantly more optimistic than the International Energy Agency’s expectations, which currently project a decline in global oil demand this year.
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According to OPEC’s latest monthly report, Saudi Arabia informed the group that its crude production fell by around 651,000 barrels per day from March levels, bringing total output down to nearly 6.316 million barrels per day.
The latest figures indicate that Saudi oil production has dropped by roughly 42% since February, when regional tensions and shipping disruptions began heavily impacting Gulf energy flows.
The broader crisis has significantly reduced oil supplies from several major Gulf producers, including Saudi Arabia, the UAE, and Kuwait, while also contributing to higher fuel prices and growing concerns about the global economy.
Secondary-source estimates in the same OPEC report showed that total OPEC production declined by approximately 1.727 million barrels per day in April, bringing the group’s output down to around 18.98 million barrels per day. Saudi Arabia accounted for a major portion of the overall reduction.
Kuwait also experienced substantial production losses, with output reportedly falling by nearly half to around 600,000 barrels per day.
Despite the severe disruptions, Saudi Arabia has managed to partially reduce the impact on exports by redirecting some crude shipments through pipeline networks connected to the Red Sea instead of relying solely on Gulf routes.
Meanwhile, the UAE recently confirmed plans to exit OPEC following long-standing disagreements with Saudi Arabia regarding production policies and broader regional political matters.
Separately, OPEC lowered its global oil demand growth forecast for 2026 to 1.2 million barrels per day. However, the organization’s outlook remains significantly more optimistic than the International Energy Agency’s expectations, which currently project a decline in global oil demand this year.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.