Kuwait cuts oil output and refinery processing

The state-owned Kuwait Petroleum Corporation (KPC) announced on Saturday that it would reduce oil production and refinery processing as a precautionary measure.

The company said the temporary step was taken after Iran attacked countries in the Persian Gulf and closed the Strait of Hormuz, through which about a fifth of the world’s oil passes.

KPC did not specify by how much production had been reduced. In February Kuwait produced about 2.6 million barrels of oil per day. The company plans to resume production once conditions for oil transport stabilise.

Kuwait’s move represents another blow to global energy markets as a result of the war between the US, Israel and Iran. Oil and gas storage facilities in the Persian Gulf region are filling up quickly as exports are severely restricted.

Restrictions have already been imposed on oil fields in Iraq, while Qatar has declared force majeure on liquefied natural gas exports. Analysts also expect the United Arab Emirates to take similar measures.

(reuters, est)