Saudi oil production rebounds to near prewar levels

OPEC production rose by 1.97 million barrels a day, the majority of which was accounted for by higher Saudi output, according to the latest data. Saudi oil production rebounded in October, driving up overall output by OPEC members to near prewar levels for the first time and helping keep down crude prices even as Iranian attacks in the Strait of Hormuz have picked up. OPEC production rose by 1.97 million barrels a day, the majority of which was accounted for by higher Saudi output, according to the latest data from the cartel.

Aramco CEO Amin Nasser said last week that the company aimed to “maximize production” in the fourth quarter, with the expectation that demand will be bolstered by efforts to replenish global oil inventories drained during the initial months of the Iran war. US military escorts, ship-to-ship transfers, and pipelines to ports away from the Strait of Hormuz have all helped restore output, although Saudi Arabia has stepped up shipments through its eastern ports as Houthi militias in Yemen threaten the Bab el-Mandeb strait. Iraq and UAE output also hit fresh highs for the year.

Boosting oil flows is essential for Gulf states as they look to restore public finances bruised by the war and higher spending on new trade routes and defense. In contrast, Iranian production was almost half of prewar levels, according to OPEC.