MARKET STRUCTURE · MIDDLE EAST
Kuwait cuts oil and refinery output
Change
Kuwait reduced oil and refinery production on Saturday, citing disruptions linked to declining shipping activity through the Strait of Hormuz.
Why it matters
Kuwait confirmed it reduced oil and refinery production on Saturday. It described the move as a precautionary step taken as maritime traffic slowed in the Strait of Hormuz. Kuwait Petroleum Corp. attributed the reductions to threats against safe passage of ships through the strait. The excerpt also describes other supply disruptions in the region, including Iraq curbing production after slowed shipments filled storage, Saudi Arabia halting operations at its largest refinery, and Qatar shutting down an LNG export facility after drone attacks.
Implications
- • Fewer crude cargoes and refined product shipments available from Kuwait while the reductions remain in place.
- • Lower refinery throughput limits output of refined products tied to export flows through the Strait of Hormuz.
Who is affected
- • Upstream oil production operators
- • Refinery operations managers
- • Crude oil traders and physical buyers
- • Shipping operators transiting the Strait of Hormuz
Source
Topics
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