Reuters | AFP: Kuwait has implemented a precautionary reduction in crude oil production and refining throughput after the ongoing attacks by Iran against the country and the effective closure of the Strait of Hormuz, Kuwait Petroleum Corporation (KPC) said on Saturday.
The cuts are another disruption for the global energy industry because of the US-Israeli war on Iran, as oil and gas storage at facilities in the Middle East Gulf rapidly fill.Oil fields in Iraq have already cut production and Qatar declared force majeure on its huge volumes of gas exports, while the United Arab Emirates is most likely to cut next.
“In light of the ongoing aggression by the Islamic Republic of Iran against the State of Kuwait, including Iranian threats against safe passage of ships through the Strait of Hormuz, KPC has implemented a precautionary reduction in crude oil production and refining throughput as part of its risk management and business continuity strategy,” it said, adding that it would be “reviewed as the situation develops”.
The national oil company did not say by how much it had reduced output.In February, Kuwait produced around 2.6 million barrels per day of crude oil.
The adjustment was strictly precautionary and would be reviewed as the situation develops, KPC said, and it remained ready to restore production levels once conditions allow.
The US-Israeli war on Iran has already spilled beyond Iran’s borders, as Tehran has responded by hitting Israel and Gulf Arab states hosting US military installations and Israel has launched fresh attacks in Lebanon after Hezbollah fired across the border.
In an interview with the Financial Times on Friday, Qatar’s Energy Minister Saad al-Kaabi said the country expected all Gulf energy producers to shut down exports within weeks if the Iran conflict continues and drives oil to $150 a barrel.
