Kuwait, as a precautionary measure, is reducing crude oil production and refining volumes after Iranian attacks on the country and the de facto closure of the Strait of Hormuz. This was reported by the Kuwait Petroleum Corporation (KPC), Reuters reports, writes UNN.
Details
Kuwait's production cuts came after "Iranian threats to the safe passage of ships through the Strait of Hormuz" and are part of a "risk management strategy and ensuring uninterrupted operations," KPC said in a statement. The national oil company did not say how much production was cut.
In February, Kuwait produced about 2.6 million barrels of oil per day.
KPC said the adjustment was purely a precautionary measure and would be reviewed as the situation developed, and that it was ready to resume production volumes as soon as conditions allowed.
The cuts are another blow to the global energy industry due to the US and Israel's war against Iran, as oil and gas storage facilities in the Persian Gulf are rapidly filling up. Oil fields in Iraq have already cut production, Qatar has declared force majeure on its huge gas exports, and the United Arab Emirates is likely to be next to cut production, the publication notes.
Recall
Qatar declared force majeure on gas exports due to the US-Israeli war against Iran. It could take at least a month to resume normal production volumes, leading to shortages in global markets.