Oil production in Saudi Arabia, the Middle East's largest oil producer, plunged last month due to the war fallout among the United States, Israel and Iran.
According to the monthly report released by the Organization of the Petroleum Exporting Countries (OPEC) on the 13th, as of Mar. 26, Saudi Arabia's daily oil production was tallied at 7,799,000 barrels. That is down 22.9% from 10,112,000 barrels on Feb. 26, just before the war.
Iraq, the Middle East's No. 2 oil producer, saw daily output plunge 61.2% over the same period, from 4,188,000 barrels to 1,625,000 barrels. The United Arab Emirates (UAE) also fell 44.7% over the period, from 3,419,000 barrels to 1,892,000 barrels. Kuwait dropped 53.0%, from 2,582,000 barrels to 1,213,000 barrels.
These countries sharply cut production after the Strait of Hormuz was blockaded by Iran, closing export routes. They were also affected when Iran, responding to attacks by the United States and Israel, struck energy facilities in Gulf oil producers. By contrast, Iran's production is estimated to have only fallen 5.6%, from 3,241,000 barrels per day in late February to 3,060,000 barrels on Mar. 26.
Venezuela's output, where U.S. oil companies have re-entered, has been rising from 823,000 barrels per day in late January to 909,000 barrels in late February and 988,000 barrels in late March.
As of Mar. 26, total production by the 12 OPEC member countries was 20,788,000 barrels, down 27.5% (7,878,000 barrels) from late February.
With crude supply down, the OPEC Reference Basket (ORB) price in March rose $48.46 per barrel from the previous month to average $116.36. The March front-month Brent contract increased $30.23 from the previous month to average $99.60, and the West Texas Intermediate (WTI) front-month rose $26.48 to average $91. The Oman front-month in the same month surged $56.14 from the previous month to $124.56.