🛢️ Gulf Producers Slash Output by 6.7 Million Barrels as Hormuz Crisis Deepens
Saudi Arabia, UAE, Iraq, and Kuwait have cut crude production by a combined up to 6.7 million barrels per day, according to market sources .
The breakdown:
• Saudi Arabia: 2–2.5M bpd reduction
• Iraq: ~2.9M bpd cut (down nearly 60% from pre-war levels)
• UAE: 500,000–800,000 bpd
• Kuwait: ~500,000 bpd
Why it's happening:
The Strait of Hormuz — which handles ~20% of global oil — is effectively closed due to the Iran conflict. With exports blocked, storage facilities are filling up fast. Producers are cutting output now to avoid a complete halt when tanks run dry .
Iraq's production has dropped from ~3.3M bpd to just 1.3M bpd . Kuwait has declared force majeure and called its cuts "precautionary" .
Market impact:
Brent crude remains elevated near $93/barrel despite recent pullbacks . JPMorgan warns cuts could reach 6M bpd if the Strait remains closed .
The big question: How long can Gulf producers sustain these cuts — and what happens when global storage starts emptying?
Thoughts? 👀