Crude oil production by OPEC fell sharply by 27.5 per cent to 20.79 million barrels per day in March, marking one of the most significant supply disruptions in decades.
The drop represents the steepest decline in OPEC output since the 1980s, surpassing even the cuts recorded in May 2020 when production was slashed following the collapse in global fuel demand triggered by COVID-19 lockdowns.
Total output plunged by 7.88 million barrels per day during the month, according to a monthly report from OPEC’s secretariat.
Before the war erupted on February 28, key OPEC+ nations had been gradually restoring previously shut-in production.
At a virtual meeting on April 5, the group agreed to a modest increase in output for May as part of that recovery plan, with another meeting scheduled for May 3.
Although a ceasefire exists between Iran and a combined U.S.-Israel force, oil production across the Middle East has been severely disrupted since the conflict began.
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The closure of the Strait of Hormuz has significantly restricted crude exports from Gulf producers, while repeated attacks on key oil infrastructure have further constrained output.
In March, Qatar’s energy minister revealed that Iranian attacks on the country’s energy infrastructure wiped out an estimated $20 billion in annual revenue and knocked out about 17 per cent of its LNG export capacity.
Repairs are expected to sideline 12.8 million tonnes per year of LNG output for between three and five years.
Iraq’s oil production dropped by about 70 per cent, falling from roughly 4.3 million bpd to around 1.3 million bpd due to export disruptions.
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Saudi Arabia was forced to halt operations at a major refinery following a drone strike that affected facilities capable of processing over 500,000 barrels per day.
Nigeria recorded a rise in crude oil production to 1.84 million bpd in March, recovering from 1.31 million bpd in February, though the country still recorded a shortfall of about 16.6 million barrels between January and February.
