The International Energy Agency says the Middle East conflict has forced Gulf countries to reduce daily crude oil production by at least 10 million barrels. That's equivalent to about 10 percent of global demand.
The IEA says the war is creating the largest supply disruption in the history of the global oil market. It warned on Thursday that unless oil tanker traffic can resume in the region, global shipments are set to fall further.
The report says that oil and product flows through the Strait of Hormuz have plunged to a "trickle" from around 20 million barrels a day before the war.
It says the lack of tankers forced Saudi Arabia, Iraq, the United Arab Emirates and other Gulf states to put oil in storage. They have now cut production because storage facilities are filling up.
The IEA says that Kazakhstan and Russia have increased output. That's partially offsetting the fall in the Middle East. But the agency still projects global supply to fall by 8 million barrels a day in March.
The IEA says it welcomes the release of oil from member nation stockpiles, but adds it's a stopgap measure. The agency calls for adequate insurance and protection for shipping in the region.
Editorial note: An earlier version referred to Kazakhstan and Russia as non-OPEC Plus producers. In fact, they are both OPEC Plus members.
