Survey: OPEC oil production in March experiences the largest decline in decades

Odaily Planet Daily News: Due to the Middle East conflict suppressing exports from major member countries, OPEC’s March crude oil production saw its steepest decline in at least four decades. Investigations show that OPEC’s daily output plunged by 7.56 million barrels per day (about 25%), to 22 million barrels per day. Data compiled by institutions since 1989 show that the output plunge in March set the largest single-month drop on record. This magnitude of decline (in barrels) also exceeded the 1973 Arab oil embargo.

According to The Oil Wars by Daniel Yergin, between October and December of that year, the market experienced an overall loss of 5 million barrels per day, but the shock at the time occurred in a global market that was far smaller. Investigations show that among OPEC member countries, Iraq—most dependent on the Strait of Hormuz—saw the largest output decline, with daily production falling by 2.76 million barrels to 1.63 million barrels per day. Saudi Arabia and the UAE suffered the next-largest losses, helped by their ability to reroute exports via alternative oil pipelines. Saudi Arabia’s daily output fell by 2.07 million barrels to 8.36 million barrels per day, while the UAE’s daily output fell by 1.44 million barrels to 2.16 million barrels per day. Despite Saudi Arabia’s ability to export via the Red Sea, oil-tanker tracking shows that Saudi Arabia’s export volume in March fell by about 50%. (Jinzi)