WSJ reported a reduction in oil production in Kuwait

Kuwait has begun reducing oil production at a number of fields as fuel storage facilities in the country fill up. This was reported on March 6 by The Wall Street Journal (WSJ).

"Kuwait began to reduce production at some oil fields after the storage capacity for accumulated oil ran out," the newspaper writes.

The country, which is the fifth largest oil producer in OPEC, may decide in the coming days to reduce oil production and refining to a level that covers only domestic needs.

According to the analytical company Kpler, if Kuwait does not start reducing production, the free space in the country's oil storage facilities will run out in about 12 days. The United Arab Emirates and Saudi Arabia may face a similar problem in the coming weeks.

According to the WSJ, the suspension of work at the field leads to a drop in reservoir pressure, and the restart of the drilling rig requires increased costs and can take from several days to weeks.

The barrel front: how the Middle East crisis has affected the energy sector

Iran threatens US energy facilities, Israel stops operation of its gas fields

The Reuters news agency reported on the same day that the US and Israeli strikes on Iran had plunged the oil market into the largest crisis in recent decades, and if the conflict did not stop, oil prices would rise sharply on March 2. It was noted that the scale of disruptions in the supply of oil and rising prices will depend on the duration of the conflict in Iran.

The day before, the Strait of Hormuz in southern Iran, which is used for the passage of oil tankers, was completely closed by the Islamic Revolutionary Guard Corps (IRGC). Some major oil companies and leading trading houses have suspended the supply of crude oil and fuel. The next day, the IRGC announced that the strait remained open to ships.

All important news is on the Izvestia channel in the MAX messenger.