OPEC Output Plummets 7.56M bpd in March

OPEC's crude oil production plummeted by 7.56 million barrels per day in March, the largest monthly drop in at least four decades, as the ongoing war between a U.S.-Israeli alliance and Iran severely restricted exports through the Strait of Hormuz. The conflict, which began in late February, has effectively closed the vital waterway, slashing output from key Gulf producers and disrupting up to 15 percent of global oil supply.

The organization, comprising 22 members including Iran, saw its total production fall to about 22 million barrels per day, according to a survey based on ship-tracking data and estimates from energy consultants. Iraq, the most dependent on the strait for exports, experienced the steepest decline, with output dropping 2.76 million barrels per day to 1.63 million. Saudi Arabia and the United Arab Emirates followed, reducing production by 2.07 million and 1.44 million barrels per day, respectively, to 8.36 million and 2.16 million. These nations partially offset losses by rerouting some exports via alternative pipelines to the Red Sea, though Saudi shipments still halved compared to prewar levels.

The Strait of Hormuz, through which roughly 20 percent of...