Brent crosses $90 as Kuwait begins curbing oil output amid storage crunch: WSJ

Global crude prices surged on Friday after a report indicated that Kuwait has begun reducing production at some oil fields as storage capacity reaches its limits, heightening concerns over supply disruptions across the Gulf.According to a report by The Wall Street Journal, citing people familiar with the matter, Kuwait has started cutting output at select fields after exhausting available crude storage. The country is also considering broader curbs that would limit both production and refining activity to levels required only for domestic consumption.

A final decision on these wider production cuts could be taken within days, the WSJ report said.
The development triggered an immediate reaction in energy markets. Brent crude rose past the $90 per barrel mark, while US equity markets weakened as investors assessed the implications of deepening disruptions in global oil flows.The pressure on Gulf producers has intensified since the escalation of the Iran conflict, which has paralysed shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes. With exports effectively stalled, regional producers are struggling to find space to store excess crude.

The WSJ report noted that major storage facilities in Saudi Arabia and the United Arab Emirates are also filling rapidly and could reach capacity within less than three weeks if current conditions persist.

Once storage infrastructure is saturated, oil producers face a difficult choice: halt production or risk operational constraints across fields.

Shutting down oil wells is widely considered a last-resort measure in the industry. Temporary closures can damage reservoir pressure and significantly raise the cost and complexity of restarting operations. In many cases, bringing fields back online can take several days or even weeks, depending on the reservoir conditions.