economy
March 7, 2026
Kuwait cuts oil production as Strait of Hormuz closure disrupts global energy market
Brent oil prices could spike above $100 per barrel if the Gulf Arab countries run out of storage space and shut down production, according to JPMorgan.
TL;DR
- Kuwait has cut oil production and refining due to threats in the Persian Gulf.
- Tankers are avoiding the Strait of Hormuz, a critical chokepoint for 20% of global oil consumption.
- Oil prices have surged significantly, with Brent futures reaching $92.69 per barrel.
- Iraq has already reduced production by 1.5 million barrels per day due to storage issues.
- Qatar has shut down liquefied natural gas production amid the disruptions.
- JPMorgan predicts oil prices could exceed $100 per barrel if storage capacity is exhausted and production halts.
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