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Kuwait reduced crude oil production due to Gulf security risks. Kuwait Petroleum Corporation acted amid Iran’s warnings about the Strait of Hormuz.
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Middle East Conflict: Amid rising tensions in the Gulf region, Kuwait has decided to cut crude oil production as a precautionary step. The country’s state-run oil company, Kuwait Petroleum Corporation (KPC), said the decision was taken in view of security risks and the prevailing situation. The move comes after recent warnings from Iran regarding the safe passage of ships via the Strait of Hormuz, which sees crossing of over 50% of Gulf crude oil.
Concerns have surfaced for petrol and diesel security as Kuwait is the fifth-largest oil producer in OPEC (Organization of the Petroleum Exporting Countries), which means that countries may have to face difficulty in procuring crude oil.
Meanwhile, prices of crude oil are likely to increase. As of now, Brent Crude oil was over USD 92 per barrel, surging almost 35 per cent since the war started.
Precautionary Step Taken Due To Security Concerns
Kuwait Petroleum Corporation said the reduction in crude oil production and refining is purely a precautionary measure. According to the company, the decision is part of its risk management strategy and efforts to ensure business continuity amid the current situation. The company also clarified that it is fully prepared to restore production to previous levels as soon as the situation returns to normal.
What’s The Current Situation of India?
The Indian government has reassured that current stock levels in petrol and diesel are sufficient to meet domestic demand.
Officials said the country’s fuel reserves remain comfortable despite energy market volatility triggered by the escalating conflict in West Asia.
Government sources earlier told ANI that India holds about eight weeks of crude oil and petroleum product inventories, including strategic reserves.
However, if tensions continue for a prolonged period, the possibility of an impact on international oil prices and petrol and diesel rates cannot be ruled out.
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March 08, 2026, 08:48 IST
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