Saudi Arabia's Oil Production Rises 12.2% to 8 Million Barrels per Day

Saudi Arabia's crude oil production rose 12.2% month-on-month in September to reach 8 million barrels per day, according to data from Al Rajhi Capital cited by the Oilprice website.

The increase comes after very low production levels in the spring and early summer, when Gulf producers cut output due to the inability to ship crude through the Strait of Hormuz. Saudi Arabia restored production by increasing ship-to-ship oil transfer operations outside the strait and diverting most exports through the port of Yanbu on the Red Sea.

Despite a temporary two-week shutdown of the East-West pipeline and loading at Yanbu in September due to September 10 attacks on the pipeline, production rose after the Kingdom resorted to shipping crude through Hormuz by transferring cargoes to other ships in the Gulf of Oman.

Brent crude prices settled at $103.5 per barrel at the end of September, boosting Saudi Arabia's oil revenues alongside increased output. Meanwhile, consumer spending rose 6.4% year-on-year in August, and the Purchasing Managers' Index (PMI) recorded its strongest reading in September since February. However, the Saudi economic picture remains mixed, as merchandise exports fell 11.5% in August compared to the same month in 2025, and oil exports declined 12.5%. Real Gross Domestic Product (GDP) contracted by 4.7% year-on-year in the second quarter of 2026, with oil activities dropping 24.8%.

What do these terms mean?

Strait of Hormuz: A narrow waterway connecting the Gulf to the Gulf of Oman and the Indian Ocean, through which a significant portion of global oil exports passes.

Purchasing Managers' Index: A monthly index based on a survey of business executives, where a reading above 50 indicates expansion of activity.

Gross Domestic Product: The value of all goods and services produced by a country during a specific period, used to measure the size and growth of the economy.