Kuwait declared force majeure on shipments of crude oil and refined products, a decision prompted by the ongoing blockade of the Strait of Hormuz.
The state-run Kuwait Petroleum Corporation (KPC) informed customers of this development on Friday, citing the contractual clause that permits suppliers to fail to meet delivery obligations.
Despite this declaration, there are indications that supplies will not cease entirely, according to sources familiar with the situation.
Recent estimates from the U.S. government suggest that over 9M barrels per day of oil production are likely to be affected in April alone.
Kuwait’s oil infrastructure has faced multiple challenges, resulting in output levels reminiscent of those observed during the early 1990s, following the Gulf War.
Moody’s downgraded the credit rating of Bahrain over the weekend, citing the closure of Hormuz as the primary factor limiting aluminium and energy exports from the GCC state.
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