The Kuwait Petroleum Corporation (KPC) officially announced a reduction in crude oil production and refining throughput on March 7, 2026. This decision comes as a precautionary measure due to escalating regional security concerns and threats to shipping routes in the Strait of Hormuz. While the reduction is significant for export management, officials have reassured the public that the domestic energy supply remains completely secure.
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What are the new work rules for staff?
To ensure safety and align with security protocols, KPC has updated its workplace regulations effective immediately. A circular issued by the corporation limits the physical attendance of non-essential staff to just 30 percent. Additionally, working hours have been adjusted to run from 9:00 AM to 3:30 PM. While these rules apply to general staff, essential managers and operational teams are still required to be on-site daily to manage the risk and ensure business continuity.
Impact on Oil Prices and Local Market
Following the announcement of production cuts and recent security incidents, oil prices have seen a sharp increase. Kuwaiti Crude rose significantly, reaching $98.48 per barrel. Despite the reduction in exports, KPC CEO Sheikh Nawaf Saud Al-Nasser Al-Sabah confirmed that strategic reserves of gasoline and diesel are sufficient for the local market. The corporation has activated a “five-axis” strategy to guarantee that local fuel needs are met without interruption.
| Crude Type | New Price (Per Barrel) |
|---|---|
| Kuwaiti Crude | $98.48 |
| Brent Crude | $93.04 |
| WTI Crude | $91.27 |
