Opec crude oil production plunged to a multi-decade low last month as the crisis in the Middle East continues to choke off Gulf exports. Supply fell by 2.25mn b/d in April, to 17.04mn b/d, the lowest level since Iraq’s invasion of Kuwait in August 1990. That crisis prompted Saudi Arabia to lead an Opec response to increase production to offset the collapse in Kuwaiti output.
This time, however, Riyadh is unable to respond in the same way, having itself been forced to implement sharp production cuts as a result of the Strait of Hormuz closure (MEES, 10 April). (CONTINUED - 1073 WORDS)
