Kuwait Crude Exports Rebound Amid Hormuz Tensions

Kuwait's crude oil exports have bounced back to about 1 million barrels per day (bpd), regaining two-thirds of the 1.6 million bpd shipped through the Strait of Hormuz before the Iran war, according to a senior official at state-owned Kuwait Petroleum Corporation (KPC).

Kuwait has managed to ramp up its crude oil shipments in recent weeks by using ship-to-ship transfers outside the Strait of Hormuz, said Shaikh Khaled Ahmad Al Sabah, managing director for international marketing at KPC.

Buyers who are willing to load cargoes inside the Persian Gulf will receive discounts on the price of oil, while those who want deliveries made outside the chokepoint will have to pay more due to increased risks, Shaikh Khaled explained.

Total daily flows out of Hormuz currently stand at about 10 million bpd, consisting of approximately 9 million bpd of crude and the rest being fuels.