Reports indicate that Saudi Arabia has begun cutting production, but analysts say this is merely a supply reallocation.

PANews reported on March 9th that, according to foreign media reports, sources familiar with the matter stated that Saudi Arabia has begun to reduce oil production due to the near-blockade of the Strait of Hormuz and the rapid filling of oil storage facilities. Saudi Aramco, a Saudi state-owned enterprise, declined to comment. Saudi Arabia produces approximately 10 million barrels of oil per day, of which about 7 million barrels are exported. Saudi Aramco has diverted some crude oil shipments from the usual route through the Strait of Hormuz to the port of Yanbu on the Red Sea, but pipeline capacity is insufficient to fully replace the original export volume. Amena Bakr, a reporter for Energy Intelligence Group, commented on the report, stating that the information is inaccurate. The production reduction is occurring in oil fields that do not produce Arab Light crude and cannot be exported through the port of Yanbu; it is actually a reallocation of supply, not a reduction in production. Saudi Aramco is also exporting oil from storage facilities outside of Saudi Arabia.