The Gulf countries are cutting oil production by at least 10 million barrels per day due to the blockage of the Strait of Hormuz, marking what the International Energy Agency (IEA) calls the largest supply disruption in history.
The IEA reported that crude production has already been reduced by at least 8 million barrels per day, with an additional 2 million barrels from petroleum products, including condensates, halted.
Significant production cuts are occurring in Iraq, Qatar, Kuwait, the United Arab Emirates, and Saudi Arabia, the IEA highlighted.
The war in the Middle East is causing an unprecedented disruption in global oil supply, the Paris-based IEA warned.
Before the conflict, around 20 million barrels of crude and petroleum products per day passed through the strategic Strait of Hormuz, a vital corridor for international oil trade. Current flows have now dwindled substantially.
Global oil supply is expected to drop by 8 million barrels per day in March, according to the IEA. This reduction in Middle Eastern output may be partially offset by increased production from non-OPEC+ nations, including Kazakhstan and Russia.
