OPEC: Saudi Crude Production Surges Over 1 Million Barrels Per Day in July
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Saudi Arabia’s crude oil production surged by over 1 million barrels per day (MMbpd) in July, signaling a temporary recovery for Persian Gulf exporters during a brief pause in the conflict with Iran, according to data submitted to OPEC.
An OPEC report obtained by Bloomberg reveals that the kingdom’s output rose to 8.2 MMbpd in July, up from 7.1 MMbpd in June. Despite this rebound, production remains significantly below levels seen prior to the conflict.
Additionally, the reported production figure exceeds the volume of oil Saudi Arabia actually supplied to the market by roughly 780,000 bpd. This discrepancy supports findings that the country is stockpiling crude while export channels remain restricted. According to the International Energy Agency, Saudi Arabia’s domestic crude inventories reached their highest levels since at least 2016 by early August.
The resumption of hostilities between the U.S. and Iran following the collapsed ceasefire continues to threaten Saudi Arabia’s primary shipping lanes through the Strait of Hormuz and the Bab el-Mandeb Strait. Nevertheless, Middle Eastern producers continue to transport substantial quantities of oil out of the region.
Overall, the seven OPEC nations that self-reported their output to the secretariat saw a combined production increase of 1.88 MMbpd, driven primarily by gains in Saudi Arabia and Iraq.
