-Iran war blocked shipments from the Middle East for the eighth consecutive day. The war has blocked the world's most important oil artery the Strait of Hormuz which is responsible for 20% of global oil and LNG supply. Analysts predict the United Arab Emirates and Saudi Arabia will have to also cut output soon as they run out of oil storage.
Kuwait Petroleum Corporation (KPC) declared force majeure, according to a trade notice seen by Reuters, after it implemented a reduction in crude oil production and refining throughput because of the conflict in the Middle East. The national oil company did not say by how much it would reduce output. 6 million barrels per day of crude oil.
It said the reduction was precautionary and would be reviewed as the situation develops and it remained ready to restore production levels when conditions allow. KPC declared force majeure because of what it said were explicit threats by Iran against the safe passage of ships through the Strait of Hormuz, continuing attacks by Iran on Kuwait and the "almost total absence" within the Arabian Gulf of vessels available to ship crude oil and products, the notice showed. The company declined to comment on the notice.
KPC is a major exporter of naphtha to Asia and a major jet fuel exporter to north-west Europe. Naphtha is a feedstock for petro-chemicals production. S.
military installations and Israel has launched fresh attacks in Lebanon after the Iran-aligned militia Hezbollah fired across the border.
