Kuwait City, Kuwait – The State of Kuwait has significantly increased its crude oil production during the final days of June, reaching approximately 1.9 million barrels per day. This move comes amid an uptick in export operations across the Gulf following a temporary peace agreement between the United States and Iran, according to a knowledgeable source cited by Reuters.
An Upward Trajectory for Kuwaiti Crude Production
The source explained that Kuwait’s average crude oil production hovered around 1.65 million barrels per day for most of June, before experiencing a notable surge to 1.9 million barrels per day during the last ten days of the month. This increase is primarily attributed to the significant improvement in export traffic and the stabilization of navigation through the Gulf. As of now, the Kuwait Petroleum Corporation has not issued any official comment confirming or denying these figures.
Tangible Recovery After a Sharp Decline
This recent surge reflects the beginning of a crucial and gradual recovery in the Kuwaiti oil sector. The source noted that Kuwait’s production in May had sharply declined to just about 580,000 barrels per day. This is an extremely low level compared to the production rates prevalent before the regional tensions and war, which were approaching the 2.5 million barrels per day mark.
Stabilized Supplies Pressure Global Oil Prices
Concurrently with the revival of Kuwaiti production, global oil prices continued their downward trend for the third consecutive day. This decline was driven by heightened expectations of reduced geopolitical risks threatening supplies through the Strait of Hormuz, following positive signs of progress in indirect talks between the United States and Iran.
As a result of these developments, Brent crude futures fell to $70.66 a barrel, while US West Texas Intermediate (WTI) crude dropped to $67.54 a barrel. Both benchmarks thus recorded their lowest levels since late February, amid market optimism that improving security and political conditions in the region will ensure the stable flow of oil to global markets.
