Home / Business and Economy / Saudi Oil Output Slashed by 600K BPD After Attacks
Saudi Oil Output Slashed by 600K BPD After Attacks
10 Apr
Summary
- Saudi Arabia's oil production capacity reduced by 600,000 barrels daily.
- Attacks on energy infrastructure impact nearly 10% of crude exports.
- Oil prices fluctuate with ongoing supply concerns impacting markets.
Saudi Arabia has experienced a substantial reduction in its oil production capacity, with approximately 600,000 barrels per day impacted due to recent attacks on its energy infrastructure. This disruption represents nearly 10% of the nation's typical crude exports, according to Bloomberg calculations.
The strikes specifically affected a pumping station for the East-West pipeline, a crucial artery for exporting crude through the Red Sea. This incident alone curtailed daily throughput by 700,000 barrels, weakening Saudi Arabia's ability to bypass the Strait of Hormuz and exacerbating supply risks for crude availability in Asia.
Global oil prices saw initial gains in early trading on April 10, 2026, advancing for a second consecutive day. However, prices remain on course for their worst weekly performance since June of the previous year. West Texas Intermediate futures are trading between $98 and $100 a barrel, while Brent crude hovers near $96, having briefly touched $100. These figures represent a weekly decline of over 10%, attributed partly to a recent ceasefire announcement by US President Donald Trump.
The market's attention is now sharply focused on supply concerns, even as diplomatic efforts continue. Discussions regarding the Strait of Hormuz, a vital energy transit chokepoint, are expected between US and Iranian officials. Oil markets have experienced extreme volatility since the conflict began, with daily price swings averaging over $9, the largest in years, prompting traders to adopt more cautious trading strategies.
