Saudi Arabia increased crude oil production by just over 1 million barrels per day in July, pumping 8.2 million bpd compared with 7.1 million bpd in June, according to data the kingdom reported to OPEC and seen by Bloomberg. The rebound reflects a temporary recovery among Persian Gulf producers during a short-lived ceasefire in the 2026 Iran war, even though output remains several million barrels per day below pre-conflict levels.
The reported production level is about 780,000 bpd higher than the volume Saudi Arabia is assessed to have supplied to the market, consistent with views that the kingdom is adding to domestic inventories while export routes remain constrained. The International Energy Agency (IEA) estimated that Saudi crude stockpiles reached their highest level since at least 2016 by early August.
The collapse of the ceasefire and renewed hostilities between the U.S. and Iran have imperilled two of Saudi Arabia’s main export channels, the Strait of Hormuz in the Persian Gulf and the Bab el-Mandeb Strait in the Red Sea, though Middle East producers continue to move considerable volumes out of the region via alternative routes, including the Red Sea port of Yanbu.
Among the seven OPEC members that directly reported production figures to the group’s secretariat, output increased by 1.88 million bpd in July, with the majority of the increase coming from Iraq and Saudi Arabia. Overall OPEC output rose by about 1.17 million bpd month-on-month to 19.85 million bpd in July, according to a Reuters survey, as Gulf members restored supplies that had been shut due to the war and the effective closure of Hormuz.