Kuwait’s oil production jumps to 1.65 million barrels per day economy

Kuwait’s crude oil production rose significantly during June to about 1.65 million barrels per day, compared to 580,000 barrels per day in May, in light of the resumption of oil flows through the Strait of Hormuz following the interim agreement between the United States and Iran, according to an informed source told Reuters.

The source said that daily production continued to rise during the second half of June, reaching a peak of 1.9 million barrels per day during the last ten days of the month, with Kuwait gradually restoring export operations through the Gulf.

The increase reflects an accelerated recovery in Gulf oil flows through the Strait of Hormuz, after the turmoil that followed the war on Iran, as oil tankers gradually began to leave the strait and exporting countries restored part of their production levels.

Kuwait was producing about 2.5 million barrels per day before the actual closure of the Strait of Hormuz, following the American and Israeli strikes on Iran in late February, reduced its production, along with other Gulf producers such as Saudi Arabia and Iraq.

The resumption of navigation contributed to reducing the impact of the crisis on Kuwait’s exports, which is one of the Gulf countries most dependent on the Strait of Hormuz to export its crude oil, unlike Saudi Arabia and the UAE, which have alternative export outlets.

On June 18, the Kuwait Petroleum Corporation announced the lifting of all force majeure notices that it had issued during the war, before offering new oil shipments to buyers the next day, indicating that export operations were returning to their normal path.

The recovery in production coincided with the continued decline in global oil prices, as prices deepened their losses after the publication of production data, trading near their lowest levels since late February, with concerns about supply disruptions in the Gulf region receding.