Lates News

According to a survey by foreign media, OPEC's crude oil production in March experienced the largest drop in at least forty years due to the Middle East conflict suppressing exports from major member countries. The survey shows that OPEC's daily production plummeted by 7.56 million barrels (approximately 25%) to 22 million barrels. Data compiled by agencies since 1989 show that the production in March saw the largest single-month decline. This decline in magnitude (in terms of barrels) also exceeded the Arab oil embargo of 1973. According to Daniel Yergin's book "The Prize," the market experienced a daily loss of 5 million barrels in total in the period of October to December of that year. However, that shock occurred in a much smaller global market. The survey showed that Iraq, the OPEC member country most dependent on the Strait of Hormuz, saw the largest decrease in production, with daily production falling by 2.76 million barrels to 1.63 million barrels. Saudi Arabia and the UAE followed in losses, benefiting from being able to partially divert exports through alternative oil pipelines. Saudi daily production decreased by 2.07 million barrels to 8.36 million barrels, while UAE daily production decreased by 1.44 million barrels to 2.16 million barrels. Despite being able to export through the Red Sea, tanker tracking shows that Saudi Arabia's exports in March decreased by about 50%.