Kuwait says it cut oil and refinery output as Strait of Hormuz shipping slowed
The Facts
- Kuwait Petroleum Corp. said it reduced oil and refinery production starting Saturday.
- Kuwait linked the output reductions to slowed or near-halted shipping traffic through the Strait of Hormuz.
- Kuwait Petroleum Corp. said the cuts were connected to Iranian threats against safe passage of ships through the Strait of Hormuz.
- Multiple reports described Kuwait as OPEC’s fifth-biggest oil producer.
- Bloomberg-reported details said the cutback began at about 100,000 barrels a day early Saturday and was expected to increase on Sunday, with further changes depending on storage levels and the status of Hormuz.
- Reports said the United Arab Emirates also began reducing oil production, with Abu Dhabi National Oil Co. citing management of offshore production levels to address storage requirements.
Context
Why did Kuwait say it cut production?
Kuwait Petroleum Corp. said it took the step as a precaution because maritime traffic through the Strait of Hormuz slowed, and it cited Iranian threats to safe passage for ships through the strait. Investing.com,Bloomberg Business
How large were the cuts reported to be?
Bloomberg-reported information said the cutback started at about 100,000 barrels a day early Saturday and was expected to almost triple on Sunday, with further gradual reductions depending on storage levels and the status of Hormuz. Bloomberg Business,Yahoo! Finance
The receipts — 81 sources
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