Kuwait Says Oil Output Recovery May Take 10-12 Weeks After Hormuz Reopens

Kuwait Petroleum Company has warned that oil production recovery could take 10 to 12 weeks after the Strait of Hormuz reopens, significantly longer than many traders anticipate. Speaking at the S&P Global Energy Middle East Petroleum and Gas Conference, Shaikh Khaled Ahmad Al-Sabah, the company's managing director for international marketing, stated that Kuwait would need six to eight weeks to restore roughly 70% of normal production levels, with the remaining 30% requiring about another month. Refining operations are expected to recover more quickly, returning to normal within two to three weeks.

This timeline has direct implications for oil traders, as the Strait of Hormuz is a critical chokepoint for global crude flows. The extended recovery period suggests that supply disruptions could persist longer than current market pricing reflects, potentially supporting prices in the near term. For fuel traders, the slower-than-expected ramp-up in Kuwaiti output may tighten regional crude availability, especially for grades typically exported from the Gulf. NowPrice's real-time fuel quotes show that traders are already adjusting positions to account for the prolonged supply uncertainty.

Looking ahead, market participants will closely monitor the actual reopening date of the Strait of Hormuz and subsequent production data from Kuwait and other Gulf producers. Any delays in the restart of operations could further exacerbate supply tightness. Additionally, the faster recovery of refining capacity may shift dynamics in product markets, with refined products potentially becoming more readily available than crude oil itself. Traders should watch for official statements from OPEC+ regarding potential output adjustments to compensate for the disruption.