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Russia-Ukraine War 2026
12OCT

Kuwait: 10-12 weeks to recover output

2 min read
10:59UTC

Kuwait Petroleum Corporation's marketing chief told the S&P Global conference on 3 June that full output would need 10-12 weeks to recover even after any Strait of Hormuz reopening.

ConflictDeveloping
Key takeaway

Even a Hormuz reopening leaves a two-to-three-month gap before barrels return, so peace rallies fade.

Kuwait Petroleum Corporation, the Gulf state's national oil company, told the S&P Global conference on 3 June that full output recovery would take 10-12 weeks even after any reopening of the Strait of Hormuz. Kuwait produced just 490kbd in May, under a fifth of its pre-war level, so it sits among the most constrained OPEC members.

The remark matters as a floor under the bounce, not as news of damage. Markets tend to price a ceasefire as an instant supply switch, fading risk premium the moment a diplomatic headline lands. The KPC timeline says that reflex is wrong: blockaded and idled fields do not restart on a press release. Reservoir management, infrastructure checks and shipping logistics impose a multi-week lag between a deal and the first restored cargo.

That 10-12 week wall means any ceasefire-driven short-squeeze fades against the same structural barrier that capped the WTI positioning unwind. A covering rally needs barrels to convert it into durable length, and Kuwait has just said those barrels are a quarter away at best. Until then, a peace headline can move the flat price but cannot refill the physical deficit underneath it.

Deep Analysis

In plain English

The US government has been issuing temporary waivers called 'General Licences' that allow certain companies, primarily Indian refineries, to keep handling Russian oil without facing US sanctions. The current waiver, called GL 134C, expires on 17 June. Secretary of State Marco Rubio said on 5 June that the US wants to end these waivers 'as soon as we possibly can', and no replacement waiver has been announced. If no new waiver is issued, Indian refineries that have been buying Russian crude could face US sanctions exposure. This would push India to find alternative crude sources quickly, which in turn affects which oil everyone else can get.

Deep Analysis
Root Causes

The GL 134 series was constructed to manage a specific contradiction: the US wanted to sanction Russian oil revenues while avoiding a sudden supply shock to India, Turkey, and other economies that had structured their refinery feedstock programmes around Russian crude. Each 30-day renewal bought time for those buyers to find alternatives.

Rubio's statement suggests the State Department has concluded that continued rolling waivers undermine the sanctions' signal value without producing the supply-substitution that was supposed to accompany each extension. The absence of a GL 134D notice as of 5 June, combined with no announced successor, breaks the 2-5 day pre-notification pattern OFAC has used for each prior GL in this series.

What could happen next?
  • Risk

    GL 134C expiry on 17 June without a GL 134D would immediately expose Indian refiners' pre-17-April Russian cargo completions to OFAC vessel-services sanctions, forcing emergency diversion or cargo abandonment.

  • Consequence

    India redirecting away from Russian crude on short notice would add 300-400kbd of spot demand to the Ceyhan, Caspian, and Atlantic Basin markets that European refiners are already competing for.

First Reported In

Update #6 · OPEC's quota is fiction at a 37-year low

OilPrice.com· 8 Jun 2026
Read original →
Different Perspectives
Government of Latvia
Government of Latvia
Latvia abstained on 22 September when the EU renewed its individual sanctions for 36 months at the price of delisting Alisher Usmanov and Mikhail Fridman, and promised national sanctions of its own. Riga's abstention marks how far a frontline member state will go to keep listed names listed.
India's Ministry of External Affairs
India's Ministry of External Affairs
After the House passed the Graham bill on 16 September, India's foreign ministry said it would keep buying energy on market terms and protect its trade. Russia supplied 30.3% of India's crude imports in fiscal 2026, so the tariff decision due around 18 October falls directly on New Delhi.
Kaja Kallas, EU foreign policy chief
Kaja Kallas, EU foreign policy chief
Kallas answered the US licence on 10 October by saying Europe would not ease pressure, and EU ministers adopted a 22nd package of nearly 1,600 listings two days later. Brussels is tightening as Washington loosens, though TASS reported the package adds no significant new trade restrictions.
Donald Trump and the US Treasury
Donald Trump and the US Treasury
The Treasury licensed Russian diesel imports until 7 April 2027 on the day of Trump's call with Putin, and Trump then told reporters Ukraine should find a new leader. Washington is trading sanctions relief for fuel supply while pressing Kyiv to halt the refinery strikes behind the shortage.
Kremlin and Deputy Prime Minister Alexander Novak
Kremlin and Deputy Prime Minister Alexander Novak
After the 9 October call the Kremlin said Russia was ready to supply oil and petroleum products to American and global markets, and Novak brought forward the end of diesel export curbs. Moscow is selling the shortage back as goodwill, with volumes that Decree No. 686 now hides from outside checks.
Volodymyr Zelenskyy, President of Ukraine
Volodymyr Zelenskyy, President of Ukraine
Zelenskyy called GL 135 an investment in prolonging the war and offered to stop striking Russian refineries if Russia stops destroying Ukraine's energy system. Answering Trump's call for a new leader, he set a total 60-day ceasefire as the condition for elections, which puts the next move on Moscow.