Kuwait has implemented a precautionary reduction in crude oil production and refining throughput following recent attacks by Iran. The measures are part of a broader disruption affecting global energy markets, exacerbated by ongoing hostilities involving the US and Israel against Iran.
In a statement from Kuwait Petroleum Corporation (KPC), it was reported that effective closures at the Strait of Hormuz have contributed to rapidly filling oil storage facilities in the region’s Gulf. This comes on the heels of Iraq’s reduction in crude production levels and Qatar announcing force majeure on its gas exports.
The US-Israeli conflict against Iran has further complicated the energy landscape, with other countries like the United Arab Emirates potentially following suit if tensions escalate. KPC cited this aggressive stance by Iran as a cause for precautionary action. The company emphasized that it would closely monitor the evolving situation before deciding whether to restore normal production levels.
Kuwait’s crude oil output, standing at around 2.6 million barrels per day in February, saw this reduction implemented out of necessity and as part of its risk management strategy. KPC noted that while they currently did not specify how much output had been adjusted, they would reassess the situation as events unfold.
In a separate development, Qatar’s Energy Minister Saad al-Kaabi highlighted the threat posed by Iran’s retaliatory strikes, which have already extended beyond Iranian borders. These include Israel and Gulf Arab states hosting US military installations. Saad also warned of potential shutdowns across all Gulf energy producers if tensions escalate further and oil prices rise to $150 per barrel.