OPEC Output Hits Lowest Level Since 2020 Amid Strait of Hormuz Closure

OPEC oil production plummeted in March to its lowest level since June 2020, primarily driven by regional conflict and the effective closure of the Strait of Hormuz. A Reuters survey confirmed that military operations have forced significant production shutdowns as shipments remain unable to reach global markets through vital maritime corridors. In response to the deepening supply crisis, the International Energy Agency (IEA) is now considering tapping further strategic oil reserves to stabilize the market. This potential intervention comes as market oil losses are projected to double in April, signaling a significant acceleration in the global supply deficit. Analysts note that the IEA's consideration of reserve releases highlights the severity of the ongoing blockade and its impact on energy security. While these strategic measures aim to mitigate the shock, the anticipated supply contraction continues to exert substantial upward pressure on crude benchmarks.