OPEC oil production falls to a six-year low

Oil production in OPEC countries fell sharply in March to its lowest level in several years, as disruptions linked to the Middle East conflict intensified. Global supply has been hit by production shut-ins across the Gulf, with analysts estimating losses of several million barrels a day.

The decline largely reflects the effective closure of the Strait of Hormuz, a key transit route through which roughly one-fifth of the world’s oil normally flows. Attacks on shipping and heightened risks have led to a collapse in tanker traffic, forcing producers to curb output.

Major producers, including Saudi Arabia, Iraq and the United Arab Emirates, have been among the hardest hit, with output cuts driven by logistical constraints and storage bottlenecks as exports stalled.

Analysts warn the impact of the crisis will be prolonged. Damage to infrastructure and disrupted shipping routes mean a return to normal production levels is likely to take time. At the same time, concerns are growing that the shock to energy supplies could weigh on the global economy and increase the risk of recession.

(reuters, pir)