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

Golden Finance reports, on April 7, according to a survey by overseas media, OPEC’s March crude oil production fell by at least the largest amount in 40 years, as the Middle East conflict curbed exports from major member countries. The survey shows that OPEC’s daily output plunged by 7.56 million barrels (about 25%), to 22 million barrels. Based on data compiled by the agency since 1989, the March output slump set the largest month-on-month decline. This scale of decline (in barrels) also exceeded the 1973 Arab oil embargo. According to Daniel Yergin’s book “The Prize,” between October and December of that year, the market experienced an overall loss of 5 million barrels per day, though that shock occurred in a much smaller global market. The survey shows that among OPEC member states, Iraq, the most reliant on the Strait of Hormuz, saw the largest drop in output, with daily production falling by 2.76 million barrels to 1.63 million barrels. Saudi Arabia and the UAE had the next-largest losses, benefiting from their ability to divert exports in part through alternative oil pipelines. Saudi Arabia’s daily output decreased by 2.07 million barrels to 8.36 million barrels, while the UAE’s daily output fell by 1.44 million barrels to 2.16 million barrels. Despite Saudi Arabia’s ability to export via the Red Sea, tanker tracking shows that Saudi Arabia’s exports in March fell by about 50%.