Key facts
- Kuwait's crude oil production reached 1.971 million barrels per day in July.
- This represents a substantial increase from 1.65 million barrels per day in June and 580,000 barrels per day in May.
- OPEC+ plans to increase production targets by an additional 188,000 barrels per day starting in September.
- The group is effectively reversing all production cuts implemented in 2023.
- Security concerns in the Persian Gulf continue to challenge normal crude oil flows.
- Kazakhstan's oil production has fallen due to disruptions affecting its exports via the Caspian Pipeline Consortium.
Kuwait's crude oil production saw a significant surge in July, reaching 1.971 million barrels per day, according to Reuters citing unnamed sources. This marks a substantial increase from 1.65 million barrels per day in June and 580,000 barrels per day in May.
The production figures align with OPEC+'s recent decision to boost production targets by an additional 188,000 barrels per day starting in September. This move effectively unwinds the final portion of the output cuts that the group agreed upon in 2023 to stabilize the market in a manner favorable to member states.
Despite the theoretical increase in production, practical challenges persist due to security concerns in the Persian Gulf, which have kept oil flows via the Strait of Hormuz considerably lower than pre-war levels. Saudi Arabia, for example, has had to reroute its exports multiple times due to Houthi actions in the Red Sea.
Furthermore, Kazakhstan is facing difficulties in increasing its output, with production falling due to Ukrainian drone attacks on the Russian Black Sea port of Novorossiysk, a key export hub for Kazakh oil. These attacks have led to repeated suspensions of oil flows through the Caspian Pipeline Consortium, forcing Kazakhstan to reduce its production significantly in late July.