Saudi Arabia announced an approximate 600,000 barrel-per-day reduction in oil production capacity on April 10.
Recent attacks on energy infrastructure caused the cut and impacted a critical Red Sea export pipeline. The loss represents approximately 10% of the kingdom's typical crude export volume.
The disruption hits a market already strained by a fragile US-Iran ceasefire and the de-facto closure of the Strait of Hormuz. The U.S. benchmark West Texas Intermediate rose to $98.26 a barrel in early Singapore trading. Prices climbed for a second consecutive day following the announcement.
The supply reduction complicates crude availability for international buyers. Asian markets face the most significant impact from the tightening supply.