Kuwait to boost oil output to 2 million bpd within a week

Kuwait is poised to significantly increase its oil production, aiming to reach 2 million barrels per day within a week. This surge would mark a substantial recovery from the average output of 573,000 bpd recorded in May. The potential restoration is closely tied to the reopening of the Strait of Hormuz, a critical chokepoint for global oil exports, following a U.S.-Iran understanding.

Kuwait's production had previously fallen below 600,000 bpd due to the Strait's closure, as the country lacks alternative export routes unlike its regional counterparts such as Saudi Arabia and the UAE. This dependency severely hampered its crude oil exports in recent months.

In parallel, Iraq has instructed operators of five major oil fields to increase production to over 3 million barrels per day, also following the preliminary deal to reopen the Strait of Hormuz.

Even prior to the recent developments concerning the Strait, Kuwait had begun offering its crude to Asian buyers. The broader expectation among Middle Eastern producers is that a sustainable normalization of traffic through the Strait of Hormuz could allow for the restoration of approximately 13 million bpd of shut-in production, provided the current agreements hold.