Hormuz Crisis Forces Massive Saudi Oil Shut-In

AI Summary

Saudi Arabia has cut oil output by approximately 20%, or 2 million barrels per day, to around 8 million bpd after shutting down the major Safaniya and Zuluf offshore fields amid the ongoing conflict with Iran that is choking Persian Gulf exports. This represents one of the largest sudden supply losses in modern oil market history. The shutdown dramatically tightens global crude supply and is expected to exert sustained upward pressure on oil prices.

Saudi Arabia has slashed oil output by roughly 20% as the war with Iran continues to choke off exports from the Persian Gulf, in what could become one of the largest sudden supply losses the global oil market has ever faced. Saudi production has dropped by about 2 million barrels per day to around 8 million bpd after the kingdom shut down output from the massive Safaniya and Zuluf offshore fields, according to sources cited by Reuters. The two fields together produce more than 2 million bpd of mainly heavy and medium-heavy crude. The shutdown is…