Wire · AZ Weekly Post
Kuwait exports about 1 million barrels of crude oil daily, including through ship-to-ship transfers outside the Strait of Hormuz, as oil flows through the waterway recover. State-owned producer Kuwait Petroleum Corp. (KPC) delivers cargoes directly to customers using its own tankers and chartered vessels. By September 8, 2026, exports have rebounded to nearly two-thirds of the 1.6 million barrels per day Kuwait exported on average last year.
Exports had previously slumped to multiyear lows due to the Iran war, which began in late February. Shaikh Khaled Al-Sabah, managing director for international marketing at KPC, stated that while the company can supply all customers, some volumes are not at pre-war levels. Buyers outside Hormuz will face higher costs due to transit risks, while those inside the Persian Gulf receive discounts.
Estimates for daily flows through Hormuz vary, with Vitol Group’s Russell Hardy citing around 10 million barrels (9 million crude) and Macquarie Group Ltd. estimating 7 million barrels per day of crude and refined fuels. This is still less than half of the 20 million barrels that transited the strait annually before the war. Renewed US-Iran fighting has threatened further disruptions.
Iran claims an agreement with Oman to manage shipping through the strait is imminent. Kuwait is also increasing refinery runs to boost fuel supplies amid tight markets for diesel. Additionally, producers are exploring alternative routes, including pipelines through Saudi Arabia and the UAE, and ship-to-ship transfers, to bypass Hormuz.
Source: CNBC TV18
