OPEC Crude Production Drops to 37-Year Low in May
OPEC crude oil production fell in May to its lowest level in at least 37 years, driven by a US blockade of Iran and ongoing disruptions in the Persian Gulf, according to a Bloomberg survey released Friday.
Significant Output Decline Among Member Countries
The organization’s 11 active members reduced output by 1.22 million barrels per day, bringing total production down to 16.33 million barrels per day last month. Iran accounted for over half of this decline. Notably, this data excludes the UAE, which left OPEC last month after six decades of membership.
Middle East Tensions Impact Oil Supply
The ongoing conflict involving a US-Israeli alliance and Iran has severely constrained Middle Eastern oil exports, particularly through the Strait of Hormuz. Countries including Saudi Arabia, Iraq, the UAE, and Kuwait have been forced to reduce crude output. Meanwhile, Iranian shipments are under further pressure due to a US-imposed port blockade in mid-April.
Iran and Kuwait See Major Production Cuts
Iranian production dropped by 710,000 barrels per day, reaching a five-year low of 2.34 million barrels per day in May. US Central Command reported that 127 commercial vessels were redirected to enforce the maritime blockade of Iranian ports.
Kuwait experienced the second-largest cut, with output falling 310,000 barrels per day to 490,000 barrels per day, representing less than one-fifth of pre-war levels. Saudi Arabia, OPEC’s leading member, reduced production by 240,000 barrels per day, totaling 6.57 million barrels per day.
OPEC and Allies Continue Quota Adjustments
Despite these cuts, OPEC and its partners have continued gradually raising production quotas over the past year to restore output halted in previous years.
Three OPEC+ delegates reported that key members plan to increase targets by 188,000 barrels per day in July, with additional monthly quota increases expected in August and September. The survey noted that UAE production rose by 300,000 barrels per day to 2.44 million barrels per day in May.
