Kuwait crude exports drop to 375,000 b/d as company plans fleet expansion

Kuwait crude oil exports fell to 375,000 barrels per day in August. This represents a drop from 1.2 million barrels per day in February. The decline follows ongoing US-Iran conflict and Iranian attacks on shipping in the Strait of Hormuz. Kuwait Petroleum Corp. is preparing for a prolonged period of trade-flow disruption. A company executive stated this at APPEC 2026 in Singapore.

The company intends to boost its own ship fleet. This move aims to give KPC better control over its supplies. Shaikh Khaled Al-Sabah, managing director of international marketing, made these remarks. He advised the industry to expect the worst and hope for the better. KPC plans to uphold supply commitments to customers in the region and Northwest Europe.

Export volumes decline sharply

Kuwait depends on the Strait of Hormuz for crude and refined shipments. Traffic through the strait has decreased significantly. Refined product exports fell to 174,000 barrels per day in August. This is down from 847,000 barrels per day in February. Jet fuel and kerosene lead the product exports. Kuwait remains a major jet fuel supplier to Europe.

Crude oil production also declined. Output reached 1.7 million barrels per day in August. This figure is lower than the 2.58 million barrels per day seen in February. These figures come from S&P Global Commodities at Sea data. The data highlights the severe impact on Gulf energy trade.

KPC pursues fleet expansion

KPC is focusing on acquiring more of its own ships. This reduces dependence on external ship availability. It improves scheduling control when trade flows become volatile. Controlling your own fleet provides an operational lead. This is critical when cargo movement becomes difficult. Regional energy trade cannot be replaced seamlessly when freight and insurance are constrained.

Oil and refined products can get stuck despite production availability. This restricts refinery runs globally. Product availability tightens as the market moves into seasonal peaks. KPC will emphasize supply resilience through logistics control. The company is shifting from short-term crisis handling to a long-term operating model.

Infrastructure investment secures supply

KPC is pursuing pipeline options for east-to-west routes. These routes go through neighboring countries. They create alternative pathways for exports. This helps when normal corridors face heightened risk. The company is also building additional storage facilities. This allows KPC to buffer cargoes and manage inventory timing. Sales can continue even when direct loading is interrupted. Hellenic Shipping News reports on these strategic shifts. The company aims to keep ports and sales open now. It will invest in fleet, pipelines, and storage to navigate prolonged disruption.