FX.co ★ Saudi Arabia Oil Production Highest in 8 Months

Saudi Arabia’s crude oil production jumped 26% in October to 10.56 million barrels per day, its highest level since before the war, as Gulf producers pressed ahead with restoring supplies despite persistent regional tensions. Output is now only a few hundred thousand barrels per day below its February level and has edged slightly above the kingdom’s OPEC quota.

The rebound underscores Riyadh’s improved ability to move tankers through the Strait of Hormuz via coordinated shuttle operations, alongside greater use of an alternative pipeline to the Red Sea coast despite attacks along that route. Rising exports are boosting the availability of physical crude at a moment when global consumption remains relatively soft, heightening the risk of a developing surplus.

The recovery in Saudi production also coincides with OPEC’s review of member capacity, a process that will help shape output limits for 2027. Saudi Aramco CEO Amin Nasser said the company plans to maximize production in the fourth quarter, anticipating that inventory restocking will lend support to global oil demand.