Kuwait Cuts Oil and Refining Output as Hormuz Stays Blocked

Kuwait, OPEC’s fifth-biggest producer, reduced oil and refinery production following the slowdown of shipping traffic through the Strait of Hormuz, the latest in a string of output reductions that hit some of the world’s biggest energy producers.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Kuwait, OPEC’s fifth-biggest producer, reduced oil and refinery production following the slowdown of shipping traffic through the Strait of Hormuz, the latest in a string of output reductions that hit some of the world’s biggest energy producers. Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The cuts follow the “ongoing aggression by the Islamic Republic of Iran against the state of Kuwait, including Iranian threats against safe passage of ships through the Strait of Hormuz,” Kuwait Petroleum Corp. said in a statement. The cutback started Saturday with 100,000 barrels a day and is likely to increase gradually depending on storage levels, a person with direct knowledge of the plan said.The reductions add to the list of energy supply cuts in countries across the Persian Gulf, which have helped drive oil prices in London to the highest close in more than two years at almost $93 a barrel. Iraq started holding back production earlier this week as the near-halt of shipments through Hormuz started filling up storage tanks, while Saudi Arabia shut its biggest refinery and Qatar closed the world’s largest liquefied natural gas export plant after drone attacks.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Kuwait produced about 2.57 million barrels a day in January, according to data compiled by Bloomberg. The only route out for the country’s oil is through the Strait of Hormuz. Saudi Arabia, the biggest producer in the region, has diverted some of its supply away from this route toward Yanbu in the Red Sea.Kuwait also began lowering processing rates at its refineries in the aftermath of the war in the Middle East with storage sites filling up. The nation’s refineries — Al-Zour, Mina Al-Ahmadi and Mina Abdullah — have a combined capacity of about 1.4 million barrels a day. Al-Zour is one of the biggest oil-processing facilities in the Middle East.(Updates with cutback volume in the second paragraph.)Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.