Saudi Arabia Slashes Oil Output by 2M BPD Amid Hormuz Disruption, Iran War

• Saudi Arabia cut oil production by 2 million bpd to 8 million bpd due to Strait of Hormuz disruption and the Iran war.
• The Strait of Hormuz has been disrupted since February 28 following US and Israel airstrikes on Iran, leading Iran to warn of $200/barrel oil prices.
• Two major offshore fields, Safaniya and Zuluf, which produce over 2 million bpd of heavy and medium heavy crude, were shut down.
• Saudi Arabia is rerouting some oil to Yanbu on the Red Sea coast to avoid the Strait, but this pipeline mainly handles light crude.
• The International Energy Agency reports Middle East Gulf countries have cut total oil production by at least 10 million bpd, with further losses expected.