Saudi Arabia Increases Oil Production to 8.2 Million Barrels

The Government of Saudi Arabia increased its crude oil production by more than 1 million barrels a day in July, raising output from 7.1 million to 8.2 million barrels a day. This production surge occurred during a brief ceasefire in the ongoing conflict between the United States and Iran.

An OPEC report indicates that total output among seven reporting members rose by 1.88 million barrels a day, with Saudi Arabia and Iraq driving the majority of that growth. Despite the rebound, Saudi production remains several million barrels below the levels recorded before the conflict began.

The kingdom is currently expanding its domestic inventories. The International Energy Agency estimates these stockpiles reached their highest levels since 2016 by early August. This accumulation of reserves comes as renewed hostilities threaten critical export channels in the Bab el-Mandeb Strait and the Strait of Hormuz.