Gulf Producers Face 60% Output Cut Amid Global Oil Supply Disruptions
The Chamber of Oil Marketing Companies (COMAC) has warned that Gulf producers could cut crude oil output by as much as 60% due to ongoing disruptions in global oil supply routes.
The warning comes amid tensions in the Middle East, with drone attacks on Saudi oil infrastructure and disruptions to oil shipments through the Strait of Hormuz pushing oil prices upward.
According to Dr. Riverson Oppong, Chief Executive Officer of COMAC, producers are facing challenges transporting and storing their output, leading to pressure to reduce production.
'Very soon, the Gulfians are going to reduce crude oil production by 60%. They have no choice because they're going to produce, they're not going to have any place to store it because of this shutdown,' Dr. Oppong said.