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Kuwait invokes ‘force majeure’ on its fuel, allowing it to forfeit delivery to NZ’s refined fuel suppliers (The Post Wellington, New Zealand)

Press/Media: Expert Comment

Description

Quoted as an energy markets expert on Kuwait Petroleum Corporation's invocation of force majeure clauses on crude and refined product deliveries, assessing the move as a warning signal rather than an immediate supply failure and situating it within a broader pattern of producer and shipper caution. Commented on how upstream stress transmits to markets at the end of global supply chains — first through price, then availability — and identified the tightness in heavy crude, the feedstock for diesel and jet fuel, as the binding constraint. Also credited as the source of the article's vessel-tracking table of inbound fuel tankers to New Zealand ports.

Subject

Middle East refinery disruption, force majeure in crude and refined product contracts, and New Zealand's exposure through Singapore and South Korean import dependence.

Period21 Apr 2026

Media contributions

1

Media contributions

  • TitleKuwait invokes 'force majeure' on its fuel, allowing it to forfeit delivery to NZ's refined fuel suppliers
    Degree of recognitionNational
    Media name/outletThe Post
    Media typeWeb
    Duration/Length/Size6 min read
    Country/TerritoryNew Zealand
    Date21/04/26
    DescriptionThis article reports Kuwait Petroleum Corporation's invocation of force majeure clauses permitting it to withhold scheduled crude and refined product deliveries amid the closure of the Strait of Hormuz, and traces the implications for New Zealand, which sources roughly a third of its refined fuel imports from Singapore and about half from South Korea — both major destinations for Kuwaiti supply. Dr Lurion De Mello assesses the announcement as a warning sign rather than a lights-out risk, arguing that it underlines the exposure of markets positioned at the end of global supply chains, where upstream stress is felt with a lag through prices before availability. He notes that more oil has been withdrawn from the supply chain than during the 1970s shocks, amplifying the significance of announcements by smaller producers, and identifies acute tightness in the heavy crude grades required for diesel and jet fuel production. The piece further documents damage across Kuwait's three major refineries, the roughly 870 vessels and 13 million barrels held inside the Persian Gulf, and the slow restart dynamics that would persist even after any agreement, alongside domestic evidence of a 3.5 per cent rise in New Zealand petrol prices in the March quarter and its contribution to a higher-than-expected CPI reading. Vessel-tracking data supplied by De Mello, with London Stock Exchange Group, documents inbound tanker arrivals, cargo composition and discharge status.
    Producer/AuthorDita De Boni
    URLhttps://www.thepost.co.nz/business/360990063/kuwait-invokes-force-majeure-its-fuel-allowing-it-forfeit-delivery-nzs-refined-fuel-suppliers
    PersonsLurion De Mello