- Goldman Sachs reports that 14.5 million barrels per day of Gulf crude output remained offline in April 2026 due to precautionary shutdowns and stock management
- Brent crude prices have surged for five consecutive days with a weekly gain of 17 percent as the maritime corridor remains nearly paralyzed
- Available empty tanker capacity in the Gulf has decreased by 50 percent since the start of the conflict which may severely bottleneck future supply restoration
- Iran has reportedly begun collecting tolls from vessels in the Strait of Hormuz while the United States has issued shoot to kill orders against boats laying mines
- Analysts warn that prolonged well shut-ins risk reducing flow rates in lower-pressure reservoirs requiring extensive workovers before full recovery
Gulf oil production drops by over half as Strait of Hormuz crisis persists
Apr 24, 2026, 12:16:46 PM UTC(1 day ago)
Impact: Very High
Affected Assets
Sources
From:@DeItaone
GULF OIL OUTPUT PLUNGES 57%, RECOVERY MAY TAKE MONTHS
Goldman Sachs says Gulf crude production has dropped by 14.5 million barrels per day — about 57% below pre-war levels — and may take months to recover even after the Strait of Hormuz reopens.
Analyst Daan Struyven says output could rebound within months if there are no further attacks and shipping fully resumes. But tanker shortages and well damage are major constraints, with available tanker capacity already down about 50%.
While limited physical damage and spare capacity from Gulf producers could help, forecasts from the Energy Information Administration and International Energy Agency suggest only 70% recovery after three months and 88% after six.
Goldman warns renewed conflict could cause lasting damage to production capacity.
