Saudi Oil Production Collapses – This Is How the War Screws Everyone
Saudi Arabia just reported something that should scare the hell out of anyone who understands how the Middle East actually functions. According to Bloomberg, Riyadh told OPEC that crude production collapsed by 1.9 million barrels per day in August to just 6.238 million barrels per day, the lowest Sa
Source: Armstrong Economics
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DW NOTE
Saudi Arabia cut production by 1.9 million barrels per day in August to 6.238 million — the lowest output in years — and the headline calls it a collapse caused by war. It wasn't. Riyadh chose this. The Strait of Hormuz remains effectively closed, global inventories are falling 3.0 million barrels per day this quarter, and Saudi Arabia is withholding supply while oil trades above $100. That's not war screwing everyone. That's Riyadh maximising the margin on a supply shock it didn't cause but won't alleviate.