OPEC oil production plunged by 830,000 barrels a day in April to 20.04 million bpd, the lowest in over two decades, as the Iran conflict and disruption in the Strait of Hormuz severely curtailed exports.
Kuwait posted the biggest decline after a full month of export disruptions, while Saudi Arabia and Iraq also cut output. The UAE was the only Gulf producer to raise production, using export routes that bypass Hormuz. Venezuela and Libya also increased output.
“The disruptions in the Strait of Hormuz are having a profound impact on global supply,” said a person familiar with OPEC’s operations. “Producers are scrambling to reroute cargoes, but the logistics are challenging.”
Analysts expect near-term oil price volatility as the market digests the scale of the shortfall. “If disruptions persist, we could see further price support, especially if demand holds up,” said a market strategist.
OPEC+ is expected to discuss the situation at its next meeting, with some members calling for compensatory cuts to stabilize the market. The Cartel has not commented officially on the output figures.
Correction: An earlier version of this article incorrectly stated that OPEC output fell to 19.8 million bpd. The correct figure is 20.04 million bpd.