Kuwait's oil production has dropped to about 600,000 barrels per day, partly because of a fire at a major refinery, but should recover substantially in the next few weeks, Persian Gulf oil analysts said yesterday.
Kuwaiti Oil Ministry sources said last month that Kuwait was producing about 900,000 barrels daily but denied press reports that output had dropped to 500,000 because of a glut on the world oil market. A government officials said the fine in the Shuaiba industrial area near the capital burned out of control for a week and destroyed 1 million barrels of oil worth $150 million.
Meanwhile, the Beirut newspaper Al Liwa reported that Libyan experts are preparing a feasibility study on the effects are preparing a feasibility study on the effects of cutting oil shipments to the United States. Quoting "informed Arab sources," Al Liwa said the study also was considering what a Libyan oil embargo on the United States would do to the Libyan economy.
In another development, the authoritative Middle East Economic Survey reported in its current issue that Saudi Arabia, the world's largest oil exporter, is more likely to raise rather than lower output later this year from a planned September level of 9 million barrels per day.
The Saudi oil minister, Skeik Ahmed Zaki Yamani, said last week that the Saudis would cut to 9 million barrels for September from 10 million now, and would then review output each month.