OPEC’s oil production fell further in April to the lowest in more than two decades, as the U.S.-Israel war with Iran effectively closed the Strait of Hormuz and forced export cuts, according to a Reuters poll.
Crude oil production in April by the Organization of the Petroleum Exporting Countries, a 12-member organization, fell by 830,000 barrels per day from the previous month to 20.04 million barrels per day, a survey found. The March figure was revised downward by 700,000 barrels per day due to a change in Saudi Arabia’s estimates. The eight member countries of the OPEC+ producer group, which includes OPEC and allies including Russia, had agreed to resume increased oil production in April, but the outbreak of the Iran war on February 28 and the de facto shutdown of Hormuz made it impossible to implement the agreement.
Kuwait experienced the group’s biggest production decline in April, according to a Reuters poll, reflecting a month-long export disruption.
Saudi Arabia and Iraq also saw further declines, but only the United Arab Emirates was able to increase production in the Gulf. Like Saudi Arabia, the UAE has export routes that bypass Hormuz, and tanker data shows an increase in UAE exports in April.
OPEC output in April was the lowest since at least 2000, excluding member state changes since then, and well below the levels reached during the 2020 coronavirus pandemic when demand collapsed, according to a Reuters poll.
In addition to the UAE, which left OPEC on May 1, Venezuela and Libya also increased production in April, the study found.
The Reuters investigation is based on flow data from financial group LSEG, information from other companies that track flows such as Kpler, and information provided by sources from oil companies, OPEC and consultants.
(Reporting by Alex Lawler; Additional reporting by Ahmad Ghaddar; Editing by Louise Heavens)
