OPEC oil output falls to lowest level since 2000 amid Iran disruption

OPEC oil production fell in May to its lowest monthly level in more than two decades, according to a Reuters survey.

The decline was driven by a US naval blockade that curtailed Iranian exports and by reduced shipments from other Gulf producers following Iran’s closure of the Strait of Hormuz.

According to the survey, output from OPEC’s 11 members fell by 1.06 million barrels per day from the previous month to 16.13 million bpd. Reuters data show this was the lowest monthly level recorded since at least 2000.

The figure was well below levels seen during the COVID-19 pandemic in 2020, when collapsing demand triggered a sharp downturn in oil markets. Production data from the United Arab Emirates, which left OPEC on May 1, were not included in the total.

The survey found that the steepest production decline occurred in Iran, reflecting the impact of the US blockade launched on April 13. Iranian crude oil and condensate exports fell to their lowest level in at least six years. Saudi Arabia’s output also continued to decline.

By contrast, sources surveyed by Reuters said Iraq managed to increase production due to stronger domestic consumption. Output in Venezuela and Nigeria also rose during the month.

Eight members of the broader OPEC+ alliance had agreed to raise production quotas for May. However, the conflict involving Iran and the US blockade prevented those increases from materializing.

The Reuters survey is based on oil-flow data from LSEG, shipment information from firms including Kpler, data provided by oil companies and OPEC sources, and information from industry consultants.