A survey revealed that OPEC's crude oil production fell to its lowest level in 36 years last month, as the ongoing conflict in Iran continues to suppress oil exports from Gulf nations and forces further shutdowns of production capacity.
Data indicated that OPEC's total output decreased by 420,000 barrels per day (bpd) in April to 20.55 million bpd, dragged down by further declines in production from Kuwait and Iran, marking the lowest level since 1990. This follows a sharp drop of 8.6 million bpd in March for the organization, the largest decline in decades, triggered by the closure of the Strait of Hormuz due to US-Iran conflict.
The survey showed that Kuwait experienced the largest production decline last month, falling by 470,000 bpd to 800,000 bpd, less than one-third of its pre-conflict level. According to compiled ship-tracking data, the country's exports have plummeted to just 22,000 bpd.
Iran followed, having maintained exports early in the conflict while restricting passage of vessels from other countries through the Strait. However, under pressure from a US blockade, Iran's production declined by 180,000 bpd to 3.05 million bpd, doubling the rate of reduction seen in the initial stages of the war.
The crude oil production survey is based on ship-tracking data, official information, and estimates from consulting firms including Rapidan Energy Group, FGE, NexantECA, Kpler, and Rystad Energy.
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