OPEC's crude oil production fell by 7.56 million barrels per day (bpd) in March. Total output reached 22 million bpd, according to a Bloomberg survey. Production fell by roughly 25% during the month. This represents the largest monthly decline in at least 40 years.
The Middle East war caused the disruption by closing the Strait of Hormuz shipping chokepoint. Brent crude futures climbed to nearly $120 per barrel following the supply shock.
Iraq led the declines with a production fall of 2.76 million bpd. Saudi Arabia's output dropped by 2.07 million bpd. The United Arab Emirates decreased production by 1.44 million bpd. These supply constraints support high oil prices and benefit energy ETFs like VDE.