Brent Crude Tops $104 as Saudi Output Hits Lowest Level Since 1990

Saudi Arabia told OPEC its crude oil production plunged to 6.238 million barrels per day in August, down sharply from 8.135 million bpd in July, marking the kingdom's lowest output since 1990. The drop, driven by renewed US-Iran hostilities that have squeezed Saudi export routes through the Strait of Hormuz, pushed Saudi market supply down to 7.122 million bpd in August from 7.417 million bpd previously.

The figures emerged in OPEC's monthly report and sent Brent crude surging to $104 a barrel intraday on September 10, the first time the benchmark has traded at that level since May 2026. OPEC+ collective production averaged 38.05 million bpd in August, up roughly 300,000 bpd from July, suggesting the Saudi losses were partially offset by output elsewhere within the group.

Alongside the production data, OPEC sharply cut its 2026 global oil-demand growth forecast to 380,000 bpd from a prior estimate of 580,000 bpd, reflecting the economic drag of the ongoing conflict. The group simultaneously raised its 2027 demand-growth outlook to 2.36 million bpd from 2.16 million bpd, signaling expectations of a significant rebound once conditions stabilize.