Kuwait Petroleum Corp. Plans Cut in Crude Volumes after OPEC+ Deal

Kuwait Petroleum Corporation (KPC) has informed its customers of a further 22% reduction in their crude contractual volumes from July until December in addition to cuts already made for May and June, two sources told Reuters on Thursday. The cuts are in line with a decision by OPEC+ to reduce oil supplies starting May, the sources said. On Sunday, KPC said it was coordinating with its clients globally to cut its crude supplies in line with its commitments under the OPEC+ deal.

OPEC and its allies led by Russia, the group known as OPEC+, agreed earlier this month to a new supply pact from May 1 to shore up the market, following a slide in demand caused by lockdowns to contain the new coronavirus.

OPEC+ plans to reduce output by a record 9.7 million barrels per day for May and June. Producers will slowly relax curbs after June, although reductions in production will stay in place until April 2022.

Kuwait's oil minister said last week that the OPEC producer has already started reducing oil supply to the international market without waiting for the OPEC+ deal to come into effect on May 1.