KAMCO Invest: Kuwait Regained Crude Oil Production Pace in June at a Faster-than-Expected Rate
KAMCO Invest report points to recovery in oil production in Kuwait and the UAE amid rising prices due to tensions between the US and Iran
Translated by Qiyas from كونا — Original source
Kuwait City, July 14 (KUNA) -- A report by Kuwait’s Kamco Invest issued on Tuesday stated that Kuwait recorded the largest increase in crude oil production in June, rising by 870,000 barrels per day to reach an average of 1.36 million barrels per day during the month, confirming a faster-than-expected recovery in output.
The report, released on Tuesday regarding global oil market performance, noted that renewed tensions between the United States and Iran pushed oil prices back above $80 per barrel. Uncertainty surrounding the prospect of a lasting peace deal in the region revived the war-related risk premium, erasing declines seen over the previous three weeks.
It added that prices received strong support from global efforts to rebuild inventories, aiming to enhance energy security resilience against future disruptions. Nevertheless, prices experienced continuous declines from levels exceeding $120 per barrel in early May 2026, trading near $70 per barrel by the end of June.
Regarding supply, the report stated that global crude oil supplies saw a strong recovery in June, with several Middle Eastern producers regaining pre-war production levels. OPEC crude oil production rose by more than 2 million barrels per day in the month.
It added that Kuwait’s output reached levels close to pre-crisis figures, averaging around 1.9 million barrels per day, although the monthly average remained at 1.4 million barrels per day. Meanwhile, UAE production hit its highest level in six years at approximately 3.8 million barrels per day.
The report pointed out that crude oil prices have risen since the beginning of July amid growing uncertainty over a US-Iran peace deal. Brent crude futures recorded marginal gains during the week ending July 3, following three consecutive weeks of declines.
It noted that crude oil trading began the week with a rise exceeding 12 percent following attacks and the closure of the Strait of Hormuz. The price surge had a broad economic impact across various asset classes, including a sharp rise in two-year US Treasury yields, a wave of selling in stock markets, an appreciation of the US dollar against a basket of currencies, and declines in gold and silver prices.
The report clarified that the average crude oil price in June recorded the steepest decline since the pandemic. The average price of Brent crude spot contracts fell for the second consecutive month to $85.2 per barrel, a 21 percent drop—the largest monthly decline since April 2020.
It continued that the average price of the OPEC Reference Basket fell relatively more, by 21.6 percent, to $89.8 per barrel in June, compared to $114.6 per barrel in May 2026. Kuwait Export Crude prices fell by 22.2 percent to an average of $92.3 per barrel.
The report noted that global oil supplies rebounded strongly in June after three consecutive months of declines through May 2026. Data from the International Energy Agency showed global oil supplies rose by 4.8 million barrels per day in June to reach 98.8 million barrels per day.
The report noted that OPEC’s crude oil production showed a partial recovery in June last year, after declining in May to its lowest level in several decades due to the closure of the Strait of Hormuz. OPEC’s average production rose by 2.34 million barrels per day during the month to reach 18.75 million barrels per day, driven by a broad-based increase in output from most member countries. (End) f n k / a m h
