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Kuwait cuts crude oil exports and Asian refineries are under pressure Back


According to a recent Reuters report, Asian refining companies are looking for crude oil to replace Kuwait's supply as the country cuts nearly one-fifth of its crude oil exports to meet its massive demand for new refineries. This has pushed up the prices of other sour crude oils and may squeeze refining profit margins.

Before the decline in Kuwait's crude oil exports, Saudi Arabia also reduced its crude oil exports, pushing Brent crude oil prices to around $90 per barrel and leaving Asian refining companies with little room for maneuver, as over two-thirds of Asia's crude oil imports rely on the Middle East.

Most customers in Kuwait will have to purchase similar quality crude oil from other crude oil supply countries such as Saudi Arabia, Iraq, and the United Arab Emirates, or purchase more expensive low sulfur crude oil from other regions.