Kuwait Adapts Oil Export Strategy Amid Hormuz Security Risks

Kuwait’s crude oil exports have climbed back to roughly 1 million barrels per day, recovering two-thirds of the volume that previously flowed through the critical chokepoint. Shaikh Khaled Ahmad Al Sabah, managing director for international marketing at Kuwait Petroleum Corporation, confirmed the shift during the Asia Pacific Petroleum Conference in Singapore. The recovery relies heavily on ship-to-ship transfers conducted in the Gulf of Oman, allowing vessels to circumvent the narrow strait entirely.

While Kuwait has successfully stabilized its outward flow, the logistics remain costly. The additional expense of shifting operations outside the Gulf is being passed directly to customers, while those willing to assume the risk of loading inside the Gulf are incentivized with price cuts. Current data suggests total flows from the region hover around 10 million barrels per day. By adopting the shuttle-and-transfer model pioneered by the United Arab Emirates, Kuwait and Qatar have managed to restore exports to 70% of pre-war levels, marking a significant recovery despite regional instability.