Consumers worldwide are bearing a war premium on their fuel prices. Image Credit: File photo

Kuwait: The CEO of Kuwait’s state oil company said a $30 per barrel “war premium” has been built into the cost of oil.

According to Kuwait Petroleum Corp.’s Sheikh Nawaf Al-Sabah, there’s little sign of demand destruction in oil markets because of high prices, although growth is slowing. Oil prices have soared almost 50 per cent this year to around $110 a barrel, mainly because of the fallout from Russia’s attack on Ukraine.

Exxon Mobil said oil markets may remain tight for three to five years largely due to under-investment since the pandemic began.

Kuwait Petroleum’s CEO also said European buyers are asking about more refined oil from the country, partly in anticipation of its Al Zour refinery coming fully onstream.

“We’re getting more calls for products,” he said. “By the end of the year, we’ll have about 615,000 barrels of oil a day being converted into mostly diesel and very low sulphur fuel oil.”