Kuwait has asked some Asian refiners to take less oil than their annual contracts as it hopes to bring the Al Djour refinery to full production by the end of this year. 3 refining sources related to this matter have given this information.
Lower supplies from Kuwait will reduce supplies from West Asia to Asia and pick up demand especially from China will support the prices. China is the world’s largest importer and it is expected that demand will normalize in China this year.
Sources at two Indian refiners and a Japanese refiner told Reuters that KPC has informed some buyers that supplies of Kuwait export blend crude could be reduced in new annual contracts starting in April.
India’s biggest refiner Indian Oil Corporation will cut annual oil purchases from Kuwait by 20 percent, or 20,000 bpd, in the year starting April, a person familiar with the matter said.
Another source in Indian refining said that Kuwait has also approached his firm and asked to take less oil from the fixed contract during the next financial year.
KPC has not responded in this regard.
Last week, Waleed Al Badr, chief executive officer of Kuwait Integrated Petroleum Industries Company, a subsidiary of Kuwait Petroleum Corporation (KPC), said Kuwait has launched the second phase of the Al Zour refinery.
Japanese refining sources did not say by how much KPC would cut supplies, but said KPC had approached other Japanese refineries to discuss the reduction.
