Al-Mutairi: Kuwait is a safety valve for energy market stability and securing global supplies
Its prudent oil policy grants it exceptional flexibility to fully meet its commitments
Najah Bilal
The monthly report issued by OPEC yesterday, Thursday, revealed that total commercial oil inventories in OECD countries rose by 9.8 million barrels on a monthly basis, reaching 2.763 billion barrels in July last year. The report confirmed that this slight increase reflects the beginning of a new wave of supplies flowing into global markets. However, inventory levels at this figure remain 57 million barrels lower than in the same month of 2025, and 47.9 million barrels below the five-year average. They also fall short of the 2015–2019 period average by 206.4 million barrels, underscoring the continued relative decline in global supplies compared to historical rates recorded over the past decade. Meanwhile, preliminary data for August indicates that total US commercial oil inventories rose by 21.6 million barrels on a monthly basis, reaching 1.242 billion barrels.
Furthermore, despite this significant monthly surge in the United States, the overall level remains approximately 44.7 million barrels, or 3.5 percent, lower than in the same month of 2025, and 14.7 million barrels below the five-year average. This clarifies that the current increase remains within safe ranges and does not constitute a massive surplus that threatens global price stability.
In this context, oil expert Nasser Al-Mutairi, in a special statement to "Al-Siyasa," attributed the current surge in global commercial inventory levels to a calculated convergence of logistical complexities and simultaneous economic shifts. He explained that the landscape is dominated by the noticeable gradual rise in the production rate of several major oil powers outside the OPEC+ alliance, a trend that structurally aligns with the precise periodic adjustments approved by alliance member states to recalibrate supplies and meet actual global market demands. He added that this quantitative accumulation was reinforced by a temporary slowdown in global refinery operating rates due to the commencement of scheduled seasonal maintenance programs, which reduced their immediate absorption capacity and diverted large volumes of crude oil toward commercial reserve tanks instead of directing them for direct consumption in fuel and various oil derivatives production lines.
Amid these developments, Al-Mutairi emphasized Kuwait’s pivotal and steadfast role as a safety valve for energy market stability and global supply security. This role is underpinned by close coordination and full commitment to OPEC+ alliance decisions and the provisions of the Joint Declaration of Cooperation. He affirmed that the prudent oil policy pursued by the state, integrated with the operational vision of the Kuwait Petroleum Corporation, grants the country exceptional flexibility in adjusting production levels in line with global economic dynamics, while fully honoring all its commitments to international clients and cementing long-term commercial partnerships to ensure structural market balance and shield it against any sharp fluctuations in the supply-demand balance.
OPEC raises oil demand growth forecast to 2.36 million barrels in 2027
The Organization of the Petroleum Exporting Countries (OPEC) has raised its forecast for global oil demand growth in 2027 to 2.36 million barrels per day, signaling expectations of a stronger recovery in crude consumption over the medium term.
On the other hand, the organization lowered its forecast for global oil demand growth in 2026 to 380,000 barrels per day, compared to previous expectations, reflecting ongoing pressures on the global economy and their impact on energy consumption.
Cultural News
Breaking News
The Economist
OPEC also kept its forecast for oil supply growth from countries outside the OPEC+ alliance unchanged at 620,000 barrels per day in 2027, as markets continue to monitor supply-demand balance and global economic growth prospects.
OPEC raised its forecast for demand for OPEC+ crude in 2027 to 43.9 million barrels per day, reflecting expectations of increased need for the alliance’s supplies to meet global consumption growth and support market balance.
The new adjustments in the organization’s estimates come as investors follow developments in global energy demand and the production policies adopted by OPEC+ to maintain stability in oil markets.
OPEC also maintained its forecast for global economic growth at 3% in 2026, while keeping its estimates for global economic growth in 2027 at 3.2%, signaling a continued stable outlook for the global economy over the next two years.
Kuwait Raises Oil Production to 1.89 Million Barrels Per Day
Kuwait increased its crude oil production in August 2026 by approximately 49,000 barrels per day, marking the fourth consecutive month of increases, reaching the highest level since February of the previous year.
According to the monthly report issued by the Organization of the Petroleum Exporting Countries (OPEC) on Thursday, Kuwait’s crude oil production last month reached 1.89 million barrels per day, compared to 1.85 million barrels per day in July 2026.
Kuwaiti oil production rose to its highest level since February 2026, when it reached 2.58 million barrels per day, maintaining its position in fifth place in terms of production, reflecting its efforts to restore production levels prevalent before the outbreak of the US-Iran war.
The production increase aligns with statements by officials seeking to restore productive capacity and expand exports. Khaled Al-Sabah, Managing Director of Global Marketing at Kuwait Petroleum Corporation, announced that the corporation is seeking to purchase more oil tankers and petroleum products, and to strengthen its supply chains to address current challenges in energy and shipping markets, coinciding with news that Kuwait is exporting around one million barrels of crude oil.
Alongside Kuwait, six countries increased their oil production, led by Iraq, which saw production rise by approximately 664,000 barrels per day, while production in five countries, including Iran, declined by 399,000 barrels per day, coinciding with the announcement by the United States of imposing an economic blockade on Iran.
Browse Geographic Maps
Kuwait Weather
News
At the level of all twelve members combined, daily production rose by 346,000 barrels to 24.08 million barrels in August 2026, compared to 23.74 million barrels in the previous month.
According to the report, the organization lowered its forecast for global oil demand growth for the fifth consecutive month to 380,000 barrels per day, while raising its estimates for 2027, supported by hopes for economic activity recovery.
In this context, OPEC maintained its forecast for global economic growth in 2026 at 3%, and the growth rate in 2027 at 3.2%.
