Kuwait Boosts Output as OPEC+ Moves to Unwind Cuts

The production hike aligns with the latest OPEC+ decision to raise output targets by 188,000 barrels daily starting in September. This move effectively concludes the reversal of production cuts initiated in 2023 to stabilize market prices. While the group theoretically aims to produce 1.65 million barrels per day more than last year, the reality on the ground remains dictated by persistent instability in the Persian Gulf and the Red Sea.

Security concerns continue to disrupt standard export routes. Saudi Arabia has been forced to reroute shipments multiple times, shifting from the Strait of Hormuz to the Red Sea, and subsequently toward the Suez Canal to evade regional threats. Meanwhile, logistical pressures are mounting elsewhere; Kazakhstan’s production dropped to roughly 1 million barrels per day in late July, down from 2 million in June. This decline stems from disruptions at the Novorossiysk terminal, where Ukrainian drone strikes have repeatedly paralyzed the Caspian Pipeline Consortium conduit, which handles the vast majority of Kazakh exports.