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Iran Export Collapse Pushes OPEC Oil Output to Multi-Decade Low, Reuters Analysis Says

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OPEC oil output fell to 16.13 million barrels per day in May as a US naval blockade slashed Iranian exports and disrupted crude flows across the Gulf, according to a Reuters survey on Wednesday.

Production from the 11-member Organization of the Petroleum Exporting Countries declined by 1.06 million b/d from April levels, according to the Reuters survey.

Falling below volumes recorded during the 2020 Covid-19 demand downturn, OPEC's May production reached its lowest monthly level since at least 2000, survey data showed.

The US' maritime blockade that began on April 13 sharply reduced Iranian exports, pushing crude oil and condensate shipments to a six-year low and driving the largest output decline among OPEC members.

Saudi Arabia also reduced production during the month, while Iraq increased supply to meet stronger domestic demand. Venezuela and Nigeria likewise raised output, according to sources cited by the survey.

Eight OPEC+ producers had planned to raise output in May, but the Iran conflict and US blockade derailed those plans and prevented the group from delivering the scheduled increase.

The survey used flow data from LSEG, information from tracking firms including Kpler, and sources at oil companies, OPEC and consultancies. The figures exclude the UAE following its May 1 departure from OPEC.

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