Four Nations Cut Oil Production Amid Global Energy Crisis Concerns

Four Gulf states, namely Saudi Arabia, the United Arab Emirates (UAE), Kuwait, and Iraq, have reported reducing oil production by at least 6 million barrels per day (bpd).

Saudi Arabia has cut oil production by 2–2.5 million bpd, the UAE by 500,000–800,000 bpd, Kuwait by approximately 500,000 bpd, and Iraq by 2.9 million bpd amid the closure of the Strait of Hormuz, according to a Bloomberg report citing sources familiar with the matter.

This means the four Gulf states have collectively reduced oil production by at least 5.9 million bpd and at most 6.7 million bpd.

In January, Saudi Arabia’s oil production stood at 10.086 million bpd, the UAE at 3.389 million bpd, Kuwait at 2.581 million bpd, and Iraq at 4.157 million bpd, according to the latest data from the Organisation of the Petroleum Exporting Countries (OPEC).

Consequently, the production reduction in the first three nations represents approximately one-fifth of their total January production, whilst in Iraq it reaches 70 per cent, according to the report.

The decline in Middle Eastern oil production is caused almost entirely by the blockade of shipments through the Strait of Hormuz, which serves as the primary route for energy exports from Gulf states.