Egypt races to replace Kuwaiti oil with Libyan supply

Egypt is seeking to import at least one million barrels of Libyan crude per month as disruptions to shipping through the Strait of Hormuz continue to impact Kuwaiti oil supplies, according to Asharq Business, citing a government official.

The report said intensive negotiations are under way between Libya’s National Oil Corporation and the Egyptian General Petroleum Corporation, aimed at securing additional crude volumes to meet the needs of Egyptian refineries, some of which rely on imports from Kuwait.

Egypt had previously been importing between one million and two million barrels of Kuwaiti oil each month, alongside roughly one million barrels from Saudi Aramco under credit arrangements.

Kuwait Petroleum Corporation has declared force majeure on certain oil exports after shipping operations were disrupted by navigational instability in the Strait of Hormuz, allowing it to suspend contractual obligations or adjust delivery schedules without penalty.

The developments come amid growing turbulence in global energy markets, with shipping activity through the Strait of Hormuz significantly curtailed. The strategic waterway accounts for nearly one-fifth of global oil trade, and the disruption has already contributed to upward pressure on oil and refined fuel prices.

In a related development, QatarEnergy announced the suspension of operations at its largest liquefied natural gas export facility following a reported drone attack, raising concerns that prolonged regional tensions could trigger a sharp escalation in energy prices.