A Reuters survey showed that OPEC oil production continued to decline in April, reaching its lowest level in more than two decades, as the U.S.-Israeli war against Iran effectively shut the Strait of Hormuz and forced export cuts.
The survey found that crude output from the 12 members of the Organization of the Petroleum Exporting Countries fell by 830,000 barrels per day (bpd) in April from the previous month to 20.04 million bpd. March production was revised down by 700,000 bpd due to a change in Saudi Arabia’s estimated output.
Eight members of the wider OPEC+ producer group, which includes OPEC and allies led by Russia, had agreed to resume oil production increases in April, although the outbreak of war with Iran on February 28 and the effective closure of Hormuz implemented the agreement impossible.
Kuwait recorded the group’s largest production decline in April, reflecting a full month of export disruptions, according to the survey.
Saudi Arabia and Iraq also posted further declines, while the United Arab Emirates was the only Gulf producer able to increase output. Like Saudi Arabia, the UAE has an export route that bypasses the Strait of Hormuz, and tanker-tracking data showed higher Emirati exports in April.
April production marked OPEC’s lowest output level since at least 2000, excluding subsequent changes in the group’s membership, according to Reuters surveys, and fell below levels seen during the COVID-19 pandemic in 2020, when demand collapsed.
In addition to the UAE, which left OPEC effective May 1, Venezuela and Libya also increased production during April, the survey found.
