OPEC countries cut output as demand slows due to Hormuz blockade

Countries that are part of OPEC, the intergovernmental organization that oversees global oil markets, are cutting their output as oil demand has slowed due to higher energy prices amid the Iran war.

The slowed demand, in turn, led OPEC to cut its forecast for oil demand growth for the year. In its latest monthly update on Wednesday, the group of petroleum-exporting countries lowered its 2026 forecast from 1.38 million barrels per day to 1.17 million barrels per day.

OPEC’s crude oil production dropped by 1.73 million barrels per day to 18.98 million barrels in April. The broader OPEC+ alliance, which includes 10 non-OPEC nations in addition to the 11 members, declined by 1.74 million barrels per day to 33.19 million barrels per day.

Overall production among OPEC members has fallen by more than 30%, or 9.7 million barrels per day, since the war started.

Before the Iran war, the Strait of Hormuz