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Kuwait oil output rises as OPEC+ unwinds more production cuts

Kuwait increased crude production to 1.971 million barrels per day in July, and OPEC+ said it will lift production targets by 188,000 barrels per day starting in September.

Reported · Written up by our desk · Energy

Kuwait’s crude oil production climbed to 1.971 million barrels per day in July, up from 1.65 million barrels per day in June and 580,000 barrels per day in May, Reuters reported, citing unnamed sources. The data suggests additional crude is moving out of the Persian Gulf, a development that could support bearish sentiment among oil traders. However, the article cautions that any shipments through the Strait of Hormuz remain well below pre-war levels. The Kuwait update comes alongside OPEC+’s latest meeting, where the group said it would raise production targets by another 188,000 barrels per day from September, effectively unwinding the final portion of production cuts agreed in 2023. OPEC+ has been reversing those cuts since spring, but the strait blockade has limited the normal flow of crude out of Gulf states.

In theory, September output would be 1.65 million barrels per day higher than in 2023, though the report says implementation is difficult given security conditions in the Persian Gulf. It notes tanker traffic has improved somewhat, and that Saudi Arabia has been rerouting exports, first away from the Strait of Hormuz toward Bab el-Mandeb in the Red Sea and then north toward the Suez Canal.

Latest closeWTI crude $86.80 ▲3.8%

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