WTI crude oil futures surged as much as 31% on Monday before paring gains to trade about 25% higher, near $113 per barrel, after a wave of production cuts by major Middle Eastern producers in the wake of disruptions in the Strait of Hormuz. The move marks the sharpest one-day advance since April 2020 and the highest price since June 2022, extending last week’s 35.6% rally.
In Iraq, output from the country’s three main southern oilfields has reportedly slumped by roughly 70%, to 1.3 million barrels per day from 4.3 million barrels per day before the conflict, according to industry sources. Kuwait, OPEC’s fifth‑largest producer, also began curbing production on Saturday and has declared force majeure. These steps follow last week’s LNG production cuts by Qatar, further tightening global energy supplies.
Analysts now expect additional output reductions from the UAE and Saudi Arabia, as their storage capacity rapidly approaches full utilization. In a separate political development, Iran has appointed the son of the late Ayatollah Ali Khamenei as its new Supreme Leader.
