"Abu Dhabi National Oil Co. is "managing offshore production levels to address storage requirements," the company said in a statement, without giving details. Kuwait Petroleum Corp. said it was lowering production at both its oil fields and refineries after "Iranian threats against safe passage of ships through the Strait of Hormuz.""
"The war in the Middle East has all but closed Hormuz, the narrow waterway linking the Persian Gulf to the open seas, to maritime traffic following Iranian threats to shipping. That's clogged up exports from the world's top oil-producing region and helped drive prices in London to the highest close in more than two years at almost $93 a barrel."
"The UAE, which pumped more than 3.5 million barrels a day as OPEC's third-biggest producer in January, is using export capacity that bypasses the Strait of Hormuz, and its international storage facilities, to ensure supply to global markets. Adnoc operates a 1.5 million barrel-a-day pipeline to Fujairah on the UAE's western coast to avoid the strait."
The UAE and Kuwait have begun reducing oil production in response to the near-closure of the Strait of Hormuz, a critical waterway for global energy exports. Abu Dhabi National Oil Company is managing offshore production to address storage constraints, while Kuwait Petroleum Corporation is cutting production at oil fields and refineries following Iranian threats to shipping safety. The disruption has significantly impacted global energy markets, with London oil prices reaching nearly $93 per barrel, the highest in over two years. Kuwait's initial cutback of approximately 100,000 barrels daily is expected to nearly triple by Sunday, with further reductions dependent on storage levels and Hormuz status. The UAE is utilizing alternative export routes, including a 1.5 million barrel-per-day pipeline to Fujairah, to maintain global supply. Other regional producers including Iraq, Saudi Arabia, and Qatar have also implemented production cuts.
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