economy
OPEC records 27% decrease in Middle East oil production in March
Oil production in the Middle East dropped by over a quarter in March, as the Iran war continues to destabilize the world’s energy supply.
TL;DR
- Middle East oil production fell by 27% in March, from 28.7 million to 20.8 million barrels per day.
- The decline was driven by losses in Iraq, Saudi Arabia, the UAE, and Kuwait, representing the sharpest drop since the 1980s.
- The Iran war and the closure of the Strait of Hormuz have disrupted about 20% of the world's oil supply.
- OPEC has reduced its second-quarter world oil demand forecast by 500,000 barrels per day.
- U.S. gas prices have risen by roughly 40%, with potential for further increases.
- Global energy markets will take months to recover once the Strait of Hormuz is reopened.