Three sources familiar with the refining sector said that Kuwait has asked some Asian refineries to reduce the oil supplies it gets under its annual agreements, while the OPEC member hopes to start large-scale operations at the Al-Zour refinery later this year.

It is possible that the reduction in supplies from Kuwait will lead to a shortage of supplies from the Middle East to Asia and raise crude prices, especially with the expectation of a recovery in demand from China, the largest importer of crude in the world, this year.

KPC has told some buyers that supply of Kuwait Export Blend crude is likely to be reduced under new annual contracts from April, two Indian and a third Japanese sources told Reuters.

A well-informed Indian source reported that…