OPEC oil output has declined to its lowest level since 2000, with production falling by 830,000 barrels per day (bpd) to an average of 20.04 million bpd in April, according to a Reuters survey published Monday.
Kuwait recorded the largest production drop, with reports indicating it exported zero crude in April thanks to its total reliance on the Strait of Hormuz.
Saudi Arabia and Iraq also saw significant output decreases as they were forced to shut-in production. Saudi production dropped towards 7 million barrels per day (bpd) following attacks on energy infrastructure, including a 600,000 bpd capacity loss from damaged facilities. However, the kingdom has primarily been using the 1,200 km East-West Pipeline (Petroline) that connects Abqaiq on the Persian Gulf to the port of Yanbu on the Red Sea to transport its oil. Oil is loaded onto tankers at the Yanbu terminal, avoiding the need for ships to pass through the Strait of Hormuz.
The United Arab Emirates (UAE) was the only Gulf member that was able to increase production in April. The UAE was able to leverage the Fujairah terminal on the Gulf of Oman to bypass the bottleneck, allowing it to export more crude than its peers. The UAE is producing roughly 3.2 to 3.6 million barrels of oil per day, though some estimates indicate a capacity as high as 4 million barrels per day. The state-owned ADNOC is actively expanding, targeting a production capacity of 5 million barrels per day by 2027 after it exited OPEC and OAPEC in early May, 2026.
Both Venezuela and Libya were able to increase their oil production in April, though these gains were insufficient to offset the massive supply disruptions caused by conflict in the Persian Gulf. Venezuela’s oil exports rose to 1.23 million barrels per day (bpd) in April, the highest level since 2018, following eased U.S. sanctions earlier in the year and improved operational stability in the Orinoco Belt. Meanwhile, Libya’s production reached 1.43 million bpd, good for a 10-year high as the National Oil Corporation repaired infrastructure and worked to increase output despite ongoing regional tensions.
By Alex Kimani for Oilprice.com
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