Crude production from the OPEC dropped sharply in March, with output declining by more than 7 million barrels per day as ongoing geopolitical tensions disrupted supply chains across key producing regions.
A Reuters survey, drawing on data from LSEG, Kpler, and other industry trackers, shows that OPEC’s total production fell to about 21.57 million barrels per day during the month. This marks the group’s lowest output level since mid-2020, when pandemic-driven cuts reshaped global supply.
The steep decline reflects the impact of the Middle East conflict, which has severely constrained exports, particularly through critical routes such as the Strait of Hormuz. With shipments restricted, several major producers were forced to cut output significantly.
Iraq recorded the largest drop among members, with production plunging from roughly 4.15 million barrels per day in February to about 1.4 million barrels per day in March. Kuwait also scaled back sharply, reducing output from over 3 million barrels per day to around 500,000 barrels per day as export bottlenecks intensified.
Other key producers, including Saudi Arabia and the United Arab Emirates, also reduced production, though their declines were relatively smaller as they were able to redirect some volumes through alternative routes.
In contrast, Nigeria and Venezuela were the only OPEC members to post output increases during the period, providing limited offset to the broader supply losses.
Analysts say the magnitude of the production decline highlights the severity of the current supply shock, with disruptions affecting both upstream production and export logistics. The resulting shortfall has contributed significantly to the recent surge in global crude prices.
With supply risks still unresolved, market participants expect continued volatility, as oil markets respond to evolving geopolitical developments and the pace of any potential recovery in disrupted production.