Persian Gulf reduces oil production by 67 mln barrels

Saudi Arabia, Iraq, the UAE and Kuwait have lowered their collective output by as much as 6.7 million barrels a day, Bloomberg reported citing sources.

The cutbacks are the most tangible supply response yet since the war started. It means they’ve reduced their collective production by as much as a third.

Oil supply cuts in the Middle East are deepening, shaving about 6% off global output, as the effective closure of the Strait of Hormuz piles more pressure on producers with every day the Iran war goes on.

Saudi Arabia has lowered output by 2 million to 2.5 million barrels a day, the UAE by 500,000 to 800,000 barrels a day, Kuwait by about half a million a day and Iraq by about 2.9 million a day.

Proportionately, Iraq has forced into the deepest cuts at almost 60%. Saudi Arabia’s, the UAE’s and Kuwait’s reductions all represent about 20% to 25% of their February output levels.