Kuwait's Oil Output Surges 20% in July Amid Ceasefire

Kuwait's crude oil output jumped by nearly 20% in July to reach its highest monthly average since the Iran conflict began, according to officials. The increase is significant, as it surpasses the April low and comes close to pre-war production levels.

The July average of 1.9 million barrels per day is a notable improvement from the 1.5 million barrels per day seen in April, but still falls short of the pre-war capacity of around 2.4 million barrels per day. The increase is attributed to the ceasefire between the US and Iran, which allowed for the removal of force majeure notices and enabled oil shipments to resume.

However, the continued negotiations on tanker traffic leave the supply route exposed to disruptions. Summer heat has also led to increased air-conditioning demand in the region, absorbing some of the extra crude and limiting its availability to global markets.