Saudi Arabia Cuts Oil Output as G7 Considers Stock Release

Saudi Arabia has initiated significant oil production cuts, joining a growing list of Gulf producers grappling with the regional fallout of the conflict between the United States, Israel, and Iran. The hostilities have effectively paralyzed maritime traffic in the region, driving the price of Brent Crude Oil up by nearly 30% on Monday to reach $119 per barrel. This surge has prompted G7 nations to evaluate the release of emergency oil stockpiles to stabilize global markets.

The state-owned Saudi Arabian Oil Company has reportedly begun reducing output at two major oilfields. This move follows similar production scale-backs in Iraq, Kuwait, Qatar, and the United Arab Emirates. These nations are facing critical storage shortages as ongoing blockades prevent the export of crude. Over the weekend, Iraq reduced output at its primary southern fields by 70%, while Kuwait Petroleum Corp declared force majeure following its own production cuts.