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Kuwait Cuts Oil After Shipping Stops
Kuwait cut oil production this week after shipping through the Strait of Hormuz nearly stopped. Kuwait is the fifth-biggest oil producer in OPEC.
Kuwait also cut refinery production. Shipping traffic through the Strait of Hormuz has nearly stopped.
If Gulf countries run out of storage space, they may shut down production. This could push Brent oil prices above $100 per barrel.
Klear Note — The Strait of Hormuz is a narrow waterway between Iran and Oman. About one-third of world's oil shipped through it. When shipping stops, oil producers can't sell their oil.
Key Terms 4
- Strait of Hormuz
- A narrow sea passage used to ship oil from the Gulf region
- OPEC
- A group of countries that work together to control oil production
- Brent oil
- A common type of oil used to set global oil prices
- refinery
- A factory that turns raw oil into fuel and other products