Saudi Arabia tightens oil tap as it cuts production

Saudi Arabia is the world's largest exporter of oil, producing ten million barrels of crude oil per day - and exporting around seven million barrels per day. The decision to cut production means the country is now taking a backseat to other major oil producers in the region, such as the United Arab Emirates, Kuwait and Iraq, which have also reduced production due to full inventories and regional security concerns.

Saudi Arabia has an oil pipeline through the country, from the oil fields to Yanbu on the Red Sea. But its capacity is not enough to cover the entire loss caused by the halt to traffic in the Strait of Hormuz.