Kuwait declares force majeure, cuts crude oil output due to Middle East conflict
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Kuwait seen in March. The country’s Kuwait Petroleum Corporation is a major exporter of naphtha to Asia and a major jet fuel exporter to north-west Europe.
PHOTO: AFP
- Kuwait cut oil output and declared force majeure on March 7 due to Middle East conflict and Iranian threats.
- KPC cited explicit threats by Iran and a lack of available ships in the Arabian Gulf for the declaration.
- The conflict blocking Strait of Hormuz, impacts 20% of global oil/LNG potentially forcing more output cuts.
AI generated
KUWAIT CITY – Kuwait Petroleum Corporation (KPC) began cutting oil output on March 7 and declared force majeure, adding to earlier oil and gas reductions from Iraq and Qatar as the US-Iran war blocked shipments from the Middle East for the eighth consecutive day.
The war has blocked the world’s most important oil artery the Strait of Hormuz which is responsible for 20 per cent of global oil and LNG supply.
Analysts predict the United Arab Emirates and Saudi Arabia will have to also cut output soon as they run out of oil storage.
KPC declared force majeure, according to a trade notice seen by Reuters, after it implemented a reduction in crude oil production and refining throughput because of the conflict in the Middle East.
The national oil company did not say by how much it would reduce output.
In February, Kuwait produced around 2.6 million barrels per day of crude oil.
It said the reduction was precautionary and would be reviewed as the situation develops and it remained ready to restore production levels when conditions allow.
KPC declared force majeure because of what it said were explicit threats by Iran against the safe passage of ships through the Strait of Hormuz, continuing attacks by Iran on Kuwait and the “almost total absence” within the Arabian Gulf of vessels available to ship crude oil and products, the notice showed.
The company declined to comment on the notice.
KPC is a major exporter of naphtha to Asia and a major jet fuel exporter to north-west Europe.
Naphtha is a feedstock for petro-chemicals production.
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 the Iran-aligned militia Hezbollah fired across the border. REUTERS
