Khaled Al-Sabah: Kuwait exports one million barrels of oil per day
- Kuwait Petroleum Corporation (KPC) is studying the extension of pipelines through neighboring countries and the construction of storage facilities
- We invite customers to enter the Arabian Gulf with their own vessels to take on oil and its products as before
- The corporation supplies its partners, delivers shipments directly, and utilizes its own tankers as well as chartered vessels
- Kuwait’s ports are open, and we are exploring opportunities to purchase additional tankers and alternatives to the Strait of Hormuz
- KPC’s ownership of its own fleet and control over its operations give it a competitive advantage over others
- We plan to increase refinery utilization rates to boost fuel supplies
- Supply disruptions could push oil prices above $130
- A difficult winter awaits northwestern Europe amid declining refining capacity
- The energy crisis could lead to rising inflation and a sharp shortage of goods in the coming two years
- The absence of Gulf producers threatens global energy markets
Khaled Al-Ahmad Al-Sabah, Managing Director of the International Marketing Sector at Kuwait Petroleum Corporation (KPC), stated that Kuwait continues to strengthen its ties with customers and partners in global energy markets, reaffirming the continuity of oil supplies despite the repercussions of the war between the United States and Iran and the disruptions witnessed in the Strait of Hormuz.
Al-Sabah added in remarks quoted by Bloomberg on the sidelines of his participation in the Asia-Pacific Petroleum Conference (APPEC 2026) in Singapore that Kuwait is currently exporting approximately one million barrels of crude oil per day, including volumes transferred ship-to-ship outside the Strait of Hormuz, alongside direct deliveries to customers.
He clarified that Kuwaiti crude exports have recovered to nearly two-thirds of last year’s average of 1.6 million barrels per day, as more tankers found ways to navigate the Strait of Hormuz, following a drop in exports to multi-year lows after the outbreak of war in late February.
He noted that buyers receiving crude outside the Strait of Hormuz will have to pay an additional cost for delivery to compensate for transit risks, while customers receiving shipments inside the Arabian Gulf will receive discounts.
Meanwhile, Reuters reported on Al-Sabah’s speech, highlighting his statement that KPC is considering options to secure oil supplies for customers amid the war, including extending pipelines through neighboring countries and building storage facilities, adding that maritime shipping has become a highly sought-after commodity.
He explained that Kuwait is evaluating alternative pipeline routes for crude exports, including through Saudi Arabia and the UAE, noting that Kuwait plans to increase refinery utilization rates to enhance fuel supplies amid ongoing shortages in oil product markets, including diesel.
Al-Sabah said in a speech quoted by KPC via its social media accounts that February 28 marked a key turning point in the energy sector, pointing out that the Gulf region accounts for about one-fifth of global energy supplies, comprising approximately 15 million barrels per day of crude oil and nearly 5 million barrels of oil products, in addition to liquefied natural gas (LNG) and gas supplies.
Al-Sabah added: “Despite the outcomes of the war that began on February 28 last year, our ports remain open, and we will continue to strengthen our relationship with our customers and partners, while building a stronger and more resilient future together.” He emphasized that KPC continues to supply all its customers, although some volumes are not as they used to be, noting that the corporation continues to operate its own fleet and is exploring the market for opportunities to purchase additional tankers.
He noted that Kuwait is committed to maintaining oil production continuity and ensuring energy supplies to its customers worldwide, despite the rising risks and costs associated with shipping and transportation. He emphasized that risks have become an integral part of the operational reality in the energy sector, and that producers and consumers must confront these challenges and prevent any party from obstructing their role in meeting global energy needs.
Al-Sabah stated, “We will continue to do our utmost to keep serving our customers and meeting their needs to the best of our ability.”
He stressed that current supply disruptions should not hinder the sector’s progress toward the future, while simultaneously urging customers to return to the Gulf region to procure oil and its products as they had previously.
Al-Sabah warned that, in his view, oil prices have not yet entered a phase of genuine escalation, noting the possibility of prices reaching $120 per barrel, and potentially $130 or more if supply disruptions persist.
He clarified that Kuwait consistently maintains that there is no closure of the strait, but rather that passage through it is unsafe, while reiterating the necessity of addressing challenges related to supply security.
He added that the continuation of the current situation would lead to a decline in refining operations and available refining capacity, predicting that the upcoming winter would be extremely difficult, particularly in northwestern Europe. He pointed out that Kuwait was among the top exporters of middle distillates to northwestern Europe in 2023.
He explained that demand during the upcoming winter may face significant challenges, as not all refineries are capable of producing derivatives that meet European winter specifications. He noted that there is already a clear shortage of such products, and that the cessation of Kuwait and Gulf states from transporting barrels, combined with disruptions to liquefied natural gas (LNG), gas, and various products from neighboring countries, will result in a substantial shortfall in markets.
Al-Sabah predicted that the world would experience significant inflation and sharp shortages in various goods and products over the next two years. He indicated that the crisis’s impact would not be limited to the energy sector alone, adding that the world may not return to pre-crisis inflation levels, and warning that continued energy supply disruptions would affect multiple economic sectors.
Al-Sabah confirmed that the Kuwait Petroleum Corporation (KPC) decided at the onset of the crisis not to halt production or shut down refining capacities. He noted that it initially reduced refinery operations to the lowest possible level before resuming work to ensure supplies for regional markets and global customers.
He stated that Kuwait continued to supply Gulf countries with various oil products to meet their needs, before KPC decided to maintain supplies to customers worldwide and remain within the supply chain. He explained that the corporation began operating refineries at the lowest possible capacity, approximately 600,000 barrels, focusing at that stage on meeting Gulf countries’ needs and supplying them with various products.
He added, “We have many customers who rely on KPC and on the level of support we provide them,” emphasizing that the corporation has initiated necessary measures to maintain the flow of shipments and sustain supplies as much as possible.
He emphasized that if Gulf energy producers cease their role in supplying global markets, it will lead to widespread disruptions in the global energy sector. He warned of a growing deficit in crude oil and petroleum products, noting that entities willing to assume shipping risks are receiving substantial price premiums, while several refineries have scaled back operations due to heightened risks.
Khaled Al-Sabah, Managing Director of International Marketing at Kuwait Petroleum Corporation (KPC), warned of the repercussions of the ongoing war and the Strait of Hormuz crisis. He pointed out that approximately 400 million barrels were withdrawn from global strategic reserves during the first months of the crisis, and projected that total withdrawals could reach around one billion barrels by year-end if the current situation persists.
He cautioned that continued reliance on strategic reserves cannot serve as a permanent solution, questioning how long these stockpiles can continue to support energy markets.
Al-Sabah clarified that KPC had developed several crisis management scenarios prior to the outbreak of hostilities. Initial estimates suggested the crisis might last up to 14 days, based on the assumption that the world could not sustain a supply shortfall equivalent to one-fifth of global energy supplies for a longer period.
He noted that the prolonged crisis has led to the redirection of many shipments to different markets, including the Far East, the Near East, and northwestern Europe. However, he stressed that replacing barrels previously supplied by the Gulf would not be easy at all.
Al-Sabah also mentioned that KPC recently signed a financing agreement for the “Shahin” project, explaining that the name means “falcon” in Arabic, symbolizing ambition and the ability to soar high.
He stated that the pipeline project’s financing value amounts to $16 billion, adding that the success of the agreement reflects the confidence of clients and global financial institutions in the Gulf region, Kuwait, its economy, and its capacity to continue implementing its projects.
Al-Sabah highlighted that KPC maintains long-standing commercial relationships with a large number of clients, particularly in Far Eastern markets. He noted that some of these relationships span more than 30 to 40 years, and the corporation recently celebrated its 50th anniversary with one of its key clients.
