OPEC Output Falls Sharply in August on Saudi Supply Constraints

The sharp Saudi-led drop flips the recent supply-growth narrative, tightening the physical market at a moment of heightened geopolitical risk. The offsetting gains from Iraq and Venezuela signal that spare capacity elsewhere remains limited and uneven, so the burden of balancing supply falls on fewer producers. With US-Iran actions as the stated driver, the key watch is whether this disruption proves temporary or extends into the next months, as that would determine how much of the output loss becomes structural.