Panic has gripped Saudi Arabia as oil production plunged to its lowest level since 1990, when Iraq invaded Kuwait. The blockade of the Strait of Hormuz and ongoing conflict in the Middle East have crippled output, with April production falling 42% compared to February.
According to OPEC data cited by Bloomberg, Saudi Arabia’s daily production dropped by 651,000 barrels in April to 6.316 million barrels per day. This is the lowest level the kingdom has recorded in 36 years. Despite the cut, Saudi Arabia managed to sustain higher deliveries to the market, averaging 6.879 million barrels per day excluding oil sent to storage.
The blockade of the Strait of Hormuz has effectively cut off Saudi Arabia and the United Arab Emirates from their traditional export routes. Both countries have relied on alternative pipelines leading to the Red Sea to maintain supply. Kuwait, lacking such infrastructure, was forced to reduce output to about 600,000 barrels per day, roughly half of its pre-war level.
Global oil market under pressure
The deteriorating situation has forced OPEC to revise its 2026 global oil demand growth forecast downward from 1.4 million barrels per day to 1.2 million barrels per day. The supply disruptions from key producers are compounding existing fears of a prolonged energy crisis. Attacks on energy infrastructure across the Arabian Peninsula have only deepened the uncertainty.
The combined effect of lower production and reduced export capacity is sending shockwaves through international markets. Analysts warn that if the Strait of Hormuz remains blocked, oil prices could surge to record levels, further straining the global economy.
Regional consequences and infrastructure vulnerability
The crisis highlights the strategic vulnerability of Gulf states that depend on a single chokepoint for their oil exports. While Saudi Arabia and the UAE have invested in alternative routes, their capacity is limited. Kuwait’s predicament underscores the risks for countries without such redundancies.
Military escalation in the region has also targeted refineries and loading terminals, forcing some producers to halt operations temporarily. The long-term impact on production capacity remains unclear, but the current shock is already the most severe in decades.
Źródło: WNP.PL, Fot. PAP/EPA/ALI HAIDER
