The Organization of the Petroleum Exporting Countries (OPEC) released its latest monthly report on Monday, revealing that oil production fell by 27 percent in March due to Iran using terrorist threats to close the Strait of Hormuz.
According to OPEC’s report, production was down by 7.88 million barrels per day (mb/d) in March, an even bigger oil shock than the 6.98 mb/d loss from the Wuhan coronavirus pandemic in May 2020.
It is also much larger than the five-percent monthly production cut voluntarily undertaken by OPEC in 1973 to punish supporters of Israel for the stunning defeat of attacking Arab powers in the Yom Kippur War — a cut that triggered a major fuel crisis in the United States which was much more dependent upon OPEC for oil at the time.
The largest percentage drop in production for an OPEC nation was reported by Iraq, which saw a 61 percent
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