Hormuz Closure Drives OPEC Output to 20-Year Low, Aramco Warns 100M-Barrel Weekly Loss
April OPEC production dropped to its lowest level in over two decades as the closure of the Strait of Hormuz forced significant export cuts. Saudi Aramco warns the market is losing 100 million barrels each week, supporting a 47% gain in December Brent futures.
1. OPEC production plunges to two-decade low
In April, OPEC crude output fell to its lowest point in over twenty years as escalating Middle East tensions effectively closed the Strait of Hormuz, compelling member nations to cut exports drastically.
2. Strait of Hormuz closure chokes exports
The shutdown of the Strait halted shipments from key producers, including Iran, creating severe logistical bottlenecks and exacerbating global supply constraints for Brent-linked products.
3. Aramco warns of severe supply losses
Saudi Aramco Chief Executive Amin Nasser cautioned that the market is losing about 100 million barrels per week, a dynamic that has underpinned a 47% surge in December Brent futures this year.