Svmuu According to a survey, OPEC's crude oil production in March experienced its largest decline in at least four decades, as conflicts in the Middle East curtailed exports from key member countries. The survey indicates that OPEC's daily output plummeted by 7.56 million barrels (approximately 25%) to 22 million barrels. Data compiled by institutions since 1989 shows that the March production plunge set a record for the largest single-month decline. This magnitude of decline (in terms of barrel count) also surpassed the 1973 Arab oil embargo.
According to Daniel Yergin's book "The Prize," the market experienced an overall loss of 5 million barrels per day from October to December that year, although that shock occurred in a much smaller global market. The survey shows that among OPEC members, Iraq, which is most reliant on the Strait of Hormuz, saw the largest production drop, with daily output decreasing by 2.76 million barrels to 1.63 million barrels. Saudi Arabia and the United Arab Emirates followed with the next largest losses, benefiting from their ability to partially divert exports via alternative pipelines. Saudi Arabia's daily production decreased by 2.07 million barrels to 8.36 million barrels, while the UAE's daily production fell by 1.44 million barrels to 2.16 million barrels. Although Saudi Arabia was able to export via the Red Sea, tanker tracking data shows its exports dropped by about 50% in March. (Jin10)