Saudi signals of normalization in oil production

Saudi Arabia told OPEC that oil production jumped by a third last month, recovering from the lowest level in more than three decades.

According to the monthly report of the OPEC General Secretariat, the Riyadh administration told the group that production increased by approximately 2 million barrels per day, reaching 8,372 million barrels per day.

This amount still remains significantly below the levels pumped before the Iran conflict.

Oil exports from the Middle East rebounded to pre-war levels last month as producers in the region managed to shore up flows through the Strait of Hormuz, a key choke point. The Saudis also managed to restore flow in a critical pipeline that allowed them to divert exports to the Red Sea after it was targeted by Houthi rebels in Yemen.

It remains unclear whether this recovery has withstood the recent increase in Iranian attacks on tankers transiting the waterway or escalating hostile actions from the Houthis.

According to the report, the Organization of Petroleum Exporting Countries (OPEC) halved this year's global oil demand growth forecast to only 200 thousand barrels per day. The downward revision was led by the United States.

OPEC's report includes data reported directly by member countries, as well as figures compiled by the group from various consultancies and media outlets. These data showed that OPEC members' total production increased by 920 thousand barrels per day in September to 25.097 million barrels per day, as increases in Saudi Arabia and Iraq offset declines elsewhere.