Oil exports from the 12-member Organization of the Petroleum Exporting Countries (OPEC) have dropped to their lowest level since 2020 due to the US war in Iran, according to a Reuters survey.
The output dropped by 7.3 million barrels per day (bpd) month-on-month to 21.57 million bpd in March, Reuters said, with Kuwait, Iraq, Saudi Arabia, and the United Arab Emirates (UAE) leading the cuts.
The outlet, citing “two sources in the survey,” said the figures could be lower after revision.
Reuters said the output is the lowest since the 21.38 million bpd output recorded in June 2020, during the COVID pandemic.
The US-Israeli war in Iran has led to Iran’s closure of the Strait of Hormuz – a key oil export route for the Gulf states, leading to choked supplies and skyrocketing fuel prices globally.
In terms of oil production, Iraq took the hardest hit, with only 1.4 million bpd in March, down from 4.15 million bpd a month prior, Reuters said. Saudi Arabia and the UAE managed to mitigate the impact by using alternative routes that bypassed the Strait of Hormuz.
In March, only two OPEC members – Venezuela and Nigeria – managed to boost their outputs, according to Reuters. The outlet did not specify the output figures.
OPEC is an intergovernmental organization of oil-producing nations that coordinates oil policies to stabilize markets. Its members consist of Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the UAE, and Venezuela.
OPEC+ is an expanded bloc comprising OPEC members alongside other oil-producing states, including Russia, Azerbaijan, Kazakhstan and Mexico.
OPEC+ has agreed to keep production steady in early 2026 and start increasing supply again in April, according to Reuters. The eight members that had been raising output are set to meet on April 5.
The CEO of Rosneft, Russia’s largest oil producer, said recently that rising fuel prices have failed to bring in significant revenue for the firm, as they were offset by rising costs such as freight fees and insurance amid domestic and external impacts.
In Ukraine, the fuel crisis driven by the war in Iran has pushed prices significantly higher, particularly for diesel, prompting the government to introduce a cashback program in March to ease the strain on locals.
US Secretary of State Marco Rubio said on Tuesday that he could see the “finish line” for the war in Iran, with US President Donald Trump set to deliver an “important” national address on Iran on Wednesday.