Saudi starts cutting oil production

Saudi Arabia has started reducing oil production as the near-blockage of the critical Strait of Hormuz starts filling storage tanks, according to a person familiar with the matter, even as it rushes to reroute some supplies through the Red Sea.

The cuts by the kingdom, the world's biggest oil exporter, follows the UAE, Kuwait and Iraq. Some of the countries have been pre-emptively turning production lower so as not to overwhelm storage too quickly and avoid a complete shutdown of output.

The war in West Asia has all but closed Hormuz to maritime traffic from around the Persian Gulf, with mostly only Iranian supply going through. The near-standstill has clogged up exports, sending oil above $100 a barrel. Saudi Arabia produces about 10 million bpd oil and exports about 7 million a day.