Middle East: Oil Production Cuts Deepen Amid Crisis

Oil production cuts in the Middle East are intensifying, reducing global supply by approximately 6%. Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait have decreased their total production by 6.7 million barrels per day, according to Bloomberg.

The war, now in its second week and involving over 12 countries, has led to the closure of the region's main export route, causing oil to accumulate in storage tanks and reducing production.

Saudi Aramco CEO Amin Nasser stated that this is the biggest crisis the region's oil and gas industry has faced. The cuts from the four nations reduce their collective output by one-third.

The turmoil pushed oil prices near $120 a barrel, but prices retreated following statements by U.S. President Donald Trump.

Iraq has been forced to make the largest cuts, nearly 60%. Reductions by Saudi Arabia, the UAE, and Kuwait amount to approximately 20% to 25% of February production levels.

Nasser emphasized that with the current geopolitical crisis, global inventories will decline even faster, and it is crucial to restart shipping in the Strait of Hormuz.