Kuwait significantly increased crude oil production in June, resuming exports through the Strait of Hormuz after a temporary truce between the US and Iran. This signals the stabilization of supplies from the Persian Gulf countries.
Kuwait increased its daily oil production from 580,000 barrels in May to 1.65 million barrels in June, and during the last ten days of the month, production reached 1.9 million barrels per day. The increase was made possible by the resumption of exports, which became possible after improved relations between the US and Iran, temporarily allowing tanker passage through the Strait of Hormuz. Before the conflict in the region escalated, Kuwait was producing approximately 2.5 million barrels of oil per day, but due to the strait being blocked by Iran, it was forced to significantly reduce production.
The Kuwaiti state oil company announced on June 18 the cancellation of all force majeure events, and the next day, it resumed oil exports, signaling a return to normal production volumes. Unlike other Persian Gulf countries, such as Saudi Arabia and the UAE, Kuwait does not have alternative oil transportation routes, so the closure of the Strait of Hormuz had a particularly negative impact on the country’s economy.
Additionally, Kuwait managed to export liquefied petroleum gas through the mentioned strait using the tanker Gas Umm Al Rowaisat, owned by the state company Kuwait Petroleum Corp. After passing through the strait, the cargo was delivered to the Indian port of Paradip.
