Kuwait reduces oil production due to saturated crude oil inventories

According to informed sources, due to the depletion of crude oil storage space, Kuwait has begun to cut production at some oil fields, indicating that the Middle East is facing a widespread oil storage crisis, bringing new risks to the global oil market. As a founding member of the Organization of the Petroleum Exporting Countries (OPEC), Kuwait is discussing further restrictions on output and refining capacity, only maintaining levels to meet domestic consumption. The comprehensive production cut decision is expected to be announced within a few days. Data provider Kpler stated that there are signs that Kuwait has already started reducing production, and in the coming days, it must intensify the cuts; otherwise, its crude oil inventories will be fully saturated in about 12 days. Shutting down oil wells may cause permanent damage to reservoir pressure, and restarting is costly, usually a last resort in oil production. Depending on reservoir conditions, restoring production may take days or even weeks. UBS commodities strategist Giovanni Stonovo said, “Even if exports resume, production cannot return to full levels on the same day.” (Sina Finance)