Saturday, September 12, 2026

Saudi Arabia's oil production fell...

Editor's note: ...sharply in August, dropping by 1.9 million barrels per day to 6.238 million barrels per day, the lowest level since 1990 and below even the wartime low seen earlier this year. Exports have also slumped, falling to around 3.1 million barrels per day, the lowest in more than a decade, as the Iran conflict and renewed Houthi threats disrupt key shipping routes. Armstrong Economics points out that this matters because "Saudi government revenue depends on price times volume, not price alone", so even with Brent above $100 a barrel, a steep drop in output combined with rising military and shipping costs is straining Saudi finances, which were already running large deficits. It warns this squeeze extends across the Gulf's debt-dependent economies and could ripple into global inflation and sovereign debt pressures. What does Armstrong Economics recommend? Warning – Fill Up Now!
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"Riyadh In Difficult Position": Saudis Shutter Critical East-West Pipeline After Drone Attacks

By Zero Hedge | September 12, 2026

Saudi Arabia temporarily shut its 7 million-barrel-a-day East-West pipeline following multiple drone attacks, exposing a massive vulnerability in a critical export route used to bypass the Strait of Hormuz during more than six months of US-Iran conflict.

The closure puts new pressure on Saudi oil exports as the pipeline designed to bypass the Hormuz chokepoint becomes a target. The Energy Ministry described the shutdown as precautionary while emergency crews secured the pipeline and assessed its safety.

 

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