Kuwait oil output nears pre-crisis levels after rapid recovery

Kuwait is rapidly restoring balance to the global energy market, with crude oil production surging to 1.65 million barrels per day in June. This marks a nearly threefold increase from May's output of 580,000 barrels per day, demonstrating a faster-than-expected recovery.

Sources indicate that Kuwait's production continued to climb, reaching about 1.9 million barrels per day in the final 10 days of June. This recovery is significant, bringing production close to the pre-crisis levels of approximately 2.5 million barrels per day before the disruption in the Strait of Hormuz.

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Kuwait’s production continued to rise, reaching about 1.9 million barrels per day in the last 10 days of June, indicating a faster-than-expected recovery in production capacity.

The Kuwait Oil Company (KOC) announced the lifting of all force majeure notices on June 18, with new export shipments commencing the following day. Reuters views this as clear evidence of the sector's return to normal operations and adherence to export contracts.

This swift recovery strengthens Kuwait's position within the global oil market, particularly as the focus shifts from supply shortage concerns to the potential for increased global supply. The US-Iran agreement and the gradual reopening of the Strait of Hormuz are seen as turning points, leading to a significant decline in crude oil prices from their crisis peaks.

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Reuters considered evidence of the sector’s return to normal operations and the resumption of adherence to export contracts.