Kuwait declares force majeure on oil supplies due to the closure of the Strait of Hormuz

Kuwait has declared force majeure on oil and oil products supplies due to the blockade of the Strait of Hormuz, which has restricted tanker access to the Persian Gulf and made it difficult to fulfill export obligations, Bloomberg writes.

The state oil company Kuwait Petroleum Corporation on April 17 notified its customers about the application of a contract clause that allows temporarily not to fulfill deliveries, follows from the document, which was familiarized by Bloomberg. According to the source of the agency, it does not mean a complete stop of supplies.

The company did not respond to Bloomberg's request for comment.

Due to the closure of the Strait of Hormuz, the energy market will miss more than 9 million barrels of oil per day in April, compared to about 7.5 million barrels per day in March, the U.S. administration estimated earlier this month.

Kuwait has faced severe disruptions in oil exports and production since the war began, with shipping stoppages and infrastructure strikes reducing production to levels seen in the early 1990s. Restoring full production will take time, even after the intensity of the fighting subsides, which could mean prolonged pressure on exports, the source told Bloomberg.

WTI futures rose 5.3% to $88.33 a barrel on April 20, while Brent rose 5.08% to $94.97.

This article was AI-translated and verified by a human editor