Oil production among OPEC members fell more than 30% since the beginning of the Iran war, the organization said.
In its latest monthly update, OPEC also lowered its demand growth forecast for the year to about 1.2 million barrels per day, compared to 1.4 million from the last report.
The cartel's production dropped by 1.7 million of barrels per day. It has plunged by almost 10 million barrels per day since the war began.
Overall, more than a billion barrels of oil have not been produced since the conflict began in late February, according to the International Energy Agency's latest update. The figure amounts to about 14 million barrels per day.
"With global oil inventories already drawing at a record clip, further price volatility appears likely ahead of the peak summer demand period," the IEA said. It also noted that the gap between the supply and demand is narrower because the market had a surplus heading into this year, the group noted.
Oil prices have soared as the Strait of Hormuz remains closed. Brent crude, the international benchmark, clocked in at $107.63 at 11:05 a.m. ET. West Texas Intermediate, the U.S. benchmark, stood at $103.17 at the same time.
The cartel last week agreed to a modest increase in oil production for June as the group continues adjusting output.
The alliance of Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman confirmed it will raise production by 188,000 barrels a day, slightly below the previous month's increase. The adjustment was agreed during a virtual meeting focused on global supply conditions and market stability.
The decision is part of a series of voluntary production adjustments first introduced in 2023 and reviewed monthly by participating countries. The group said the latest change reflects continued coordination to manage supply while retaining flexibility to respond to market developments, according to the OPEC statement.
The meeting marked the first OPEC+ decision since the United Arab Emirates exited the group on May 1. The UAE's departure ended nearly six decades of membership and removed one of the alliance's largest producers from the coordinated quota system.
CNBC noted that the UAE had been the third-largest producer in OPEC prior to its exit behind Saudi Arabia and Iraq. The country's departure has altered the composition of the group's decision-making structure.
