According to a report from the Wall Street Journal, Kuwait has initiated a reduction in oil production across several fields because its storage capacity has reached its limit, exacerbated by suspended navigation in the Strait of Hormuz due to the ongoing conflict in Iran. This situation raises concerns about a broader storage crisis that poses new risks to the global oil market.

Kuwait, a founding member of the Organization of the Petroleum Exporting Countries (OPEC), is reportedly discussing further cuts to its production and refining capacity. These discussions could lead to limiting output to only what is necessary for domestic consumption. A decision on these comprehensive reductions is anticipated within the coming days.

The data analytics firm Kayrler has indicated that initial signs suggest Kuwait is already beginning to cut production levels, projecting that its storage tanks could be full within approximately 12 days. The Wall Street Journal also highlighted that shutting down an oil well can jeopardize the reservoir's integrity over the long term, leading to expensive reactivation costs, which is generally considered a last resort for oil-producing nations.