KIPIC: Kuwait records largest increase in crude oil production in June - Sarmad

(KUNA) — A report by Kuwait’s KIPCO Investment (KIPCO Invest) 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 its recovery at a faster pace than expected.

The report, issued today on 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 explained that prices received strong support from global efforts to rebuild inventories, aiming to enhance energy security resilience against future disruptions. Nevertheless, prices continued to fall from levels exceeding $120 per barrel in early May 2026, trading near $70 by the end of June.

Regarding supply, the report said global crude oil supplies saw a strong recovery in June, with several Middle Eastern producers returning to pre-war production levels. OPEC crude output rose by more than 2 million barrels per day in the month.

It added that Kuwait’s production 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 a six-year high 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 posted marginal gains in the week ending July 3, following three consecutive weeks of declines.

It noted that crude trading began the week with a rise exceeding 12 percent after attacks and the closure of the Strait of Hormuz. The price surge had broad economic effects across various asset classes, including a sharp rise in two-year US Treasury yields, a wave of selling in equity markets, a stronger US dollar against a basket of currencies, and declines in gold and silver prices.

The report clarified that the average crude oil price recorded its steepest decline since the pandemic in June. The average spot price for Brent crude fell for a second consecutive month to $85.2 per barrel, a 21 percent drop, marking 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, down from $114.6 per barrel in May 2026. Kuwait Export Crude prices fell by 22.2 percent to an average of $92.3 per barrel.

It mentioned 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 increased by 4.8 million barrels per day in June to reach 98.8 million barrels.

The report indicated that OPEC crude production showed partial recovery in June after declining in May to multi-decade lows due to the closure of the Strait of Hormuz. OPEC 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 among most member countries.