OPEC oil output falls to 26-year low amid Middle East conflict
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OPEC oil production dropped to its lowest level in 26 years, driven by the ongoing Middle East conflict. The decline has tightened global supply, pushing prices higher.
Production Decline
OPEC's crude output fell to 26.4 million barrels per day in May, the lowest since 2000, according to 24.kz. The drop is primarily attributed to disruptions in several member states affected by regional instability. Iraq and Kuwait reported the largest declines, with combined losses exceeding 1.2 million bpd.
Market Impact
Brent crude rose above $85 per barrel on the news, up 4% week-on-week. Analysts at Goldman Sachs estimate the supply gap could widen further if hostilities persist. The International Energy Agency warned that sustained low output risks straining global inventories.
Nigeria's Daily Revenue Loss
Nigeria loses an estimated $21 million daily as crude oil production remains below its OPEC target of 1.5 million barrels per day. Output averages 1.42–1.45 million barrels per day, straining the national budget and foreign exchange reserves.
What's Next
OPEC's next monthly meeting is scheduled for July 5 to review production targets. It remains unclear whether the group will adjust quotas to compensate for involuntary losses.
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OPEC oil output falls to 26-year low amid Middle East conflict
