Oil Prices Near $110 as First Production Cuts Hit Global Markets

(Emirates 24/7 — Global crude oil prices surged past the $100 mark, nearing $110 per barrel during Monday's opening trades, following significant production cuts by major Middle Eastern producers amid the ongoing closure of the strategic Strait of Hormuz.

International benchmark Brent crude jumped 16.19%, or $15.01, to reach $107.70. Meanwhile, U.S. West Texas Intermediate (WTI) soared 18.98%, or $17.25, to hit $108.15 per barrel. WTI recently recorded its largest weekly gain in futures trading history since 1983, rising nearly 35%.

The price spike follows an announcement by Kuwait, OPEC’s fifth-largest producer, regarding precautionary production and refinery cuts due to threats to maritime safety in the Gulf.

In Iraq, OPEC's second-largest producer, output has faced a near-total collapse. Production at the three primary southern oil fields plummeted by 70% to 1.3 million barrels per day (bpd), down from a pre-war level of 4.3 million bpd, according to industry officials.

The United Arab Emirates, OPEC’s third-largest producer, stated Saturday that it is "carefully managing offshore production levels to meet storage requirements." The Abu Dhabi National Oil Company (ADNOC) confirmed that its onshore operations continue to proceed normally, reflecting the state’s robust business continuity framework amid regional shifts.