A survey indicates that crude oil production from the Organization of the Petroleum Exporting Countries (OPEC) declined in May, reaching its lowest level in decades. The ongoing conflict involving Iran and disruptions to shipping in the Persian Gulf region continue to suppress output from the cartel's member nations.
The media survey reveals that the 11 current OPEC members saw their combined daily crude output fall by 1.22 million barrels in May to 16.33 million barrels. More than half of this decline originated from Iran. This represents the lowest production level in at least 37 years. The data excludes the United Arab Emirates, which exited OPEC last month.
The conflict between the United States, Israel, and Iran has severely impacted Middle Eastern oil supply. The critical Strait of Hormuz shipping lane is largely paralyzed, compelling Saudi Arabia, Iraq, the UAE, and Kuwait to reduce their crude production. Following the US blockade of Iranian ports in mid-April, Iran's crude exports have also come under significant pressure.
According to the survey, Iran's daily crude production fell by 710,000 barrels in May to 2.34 million barrels, marking its lowest level in five years. The second-largest decline was seen in Kuwait, where daily output dropped by 310,000 barrels to 490,000 barrels—less than one-fifth of its pre-conflict level. Saudi Arabia's daily production decreased by 240,000 barrels to 6.57 million barrels.
Despite substantial capacity being offline, OPEC and its allies have nominally increased their production quotas over the past few months, continuing a process of planned output hikes. Three OPEC+ delegates stated they expect the main member countries to approve another small quota increase during a video conference on Sunday, amounting to an additional 188,000 barrels per day for July.
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