Khaberni - Bloomberg reported on Tuesday that Saudi Arabia has cut its oil production by between two and 2.5 million barrels per day, and that the UAE has reduced its production by between 500,000 and 800,000 barrels per day.
Bloomberg added that Kuwait has also reduced its production by half a million barrels per day, while Iraq's cuts amounted to about 2.9 million barrels per day.
Bloomberg explained that the total reductions in oil production by the four countries - Saudi Arabia, the UAE, Kuwait, and Iraq - amounted to about 6.7 million barrels of oil per day, according to knowledgeable sources who requested anonymity.
These cuts come at a time when traffic is almost completely halted in the Strait of Hormuz, which carries about 20% of the world's oil supplies, causing significant confusion in the markets.
The largest cuts since the beginning of the war
Bloomberg noted that these cuts are the most impactful since the start of the war on Iran, as the four countries have reduced their production by about a third, which means a 6% reduction in global oil supply.
The war has disrupted oil exports through the Strait of Hormuz, which led to oil tanks being filled, necessitating a production cut, according to Bloomberg.
The shortage of oil supply in the markets led to the price of Brent crude reaching nearly 120 dollars per barrel on Monday, before falling to about 92 dollars after President Donald Trump said the war would end soon.
In related news, the Iranian Revolutionary Guard announced on Tuesday that it would not allow "a single liter of oil" from the Middle East to be shipped if American and Israeli attacks on Iran continued, while Trump warned that the United States would launch harder strikes on Iran if it blocked exports through the Strait of Hormuz.
In this context, Saudi Aramco, the world's largest oil exporter, said on Tuesday that global oil markets could face "catastrophic" consequences if the war with Iran continued to disrupt shipping through the Strait of Hormuz.
Reuters quoted the CEO of the company, Amin Nasser, as saying that the impact of this disruption is not limited to the shipping and insurance sectors only, but also forebodes severe sequential consequences for the aviation, agriculture, automotive, and other sectors.
