Kuwait is pumping oil at about 75% of prewar levels, producing around 2 million barrels a day compared to 2.6 million before the Iran conflict began in late February, Sheikh Nawaf Al-Sabah, CEO of Kuwait Petroleum Corp., said in an interview. Despite ongoing threats to shipping in the Strait of Hormuz, more tankers are risking transits due to the waterway’s irreplaceable role in global commerce. KPC continues to meet its crude oil obligations to customers, but Sheikh Nawaf warned of global oil product shortages, citing Europe’s emergency diesel and jet fuel releases as linked to Kuwait’s reduced output.
Prior to the war, Kuwait was a major supplier of jet fuel and diesel to Europe and the UK. Strategic storage levels have dropped to critical levels, he added, emphasizing that without freedom of navigation through Hormuz, supply disruptions will persist.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing