OPEC output falls to lowest since 2000 after Hormuz closure

OPEC crude output dropped to 20.04 million barrels per day in April, down 830,000 bpd from March, as the closure of the Strait of Hormuz curtailed exports from the Persian Gulf.

March had already produced a historic decline of 7.5 million bpd, the largest single-month fall in OPEC history. Combined losses for March and April totaled about 8.33 million bpd.

Saudi Arabia, Iraq and Kuwait recorded the largest April declines because their exports depend on Gulf shipping routes. Kuwait faced the steepest reduction, reflecting its near-total reliance on Persian Gulf channels.

A ceasefire announced on April 7 did not restore shipping through the strait, and production continued to slide through the rest of the month.

The United Arab Emirates increased shipments by routing oil through the Habshan‑Fujairah pipeline to the Gulf of Oman, bypassing the Strait of Hormuz. Venezuela and Libya raised output in April; both are far from the Persian Gulf and were not affected by the Hormuz closure.

The supply shortfall pushed benchmark oil prices close to $120 per barrel. Market analysts estimated the combined March-April loss exceeded the additional output Venezuela and Libya could add to global markets.

Governments may release oil from strategic petroleum reserves to ease short-term shortages. U.S. reserve levels have been drawn down in recent years, limiting the volume available for release.

April’s 20.04 million bpd is the lowest OPEC production measured since at least 2000 when membership changes are excluded. For context, the cartel produced more oil during the 2020 global demand collapse than it did in April.