Kuwait appoints new prime minister after months of political chaos

The Kuwaiti emir issued a decree on July 24 appointing retired general Sheikh Ahmad Nawaf al-Sabah as the country's new minister, easing a political impasse that has undermined the ability of OPEC to increase oil supply.

Sheikh Ahmad, the son of Kuwaiti emir, has been tasked with forming a new government as Kuwait awaits general elections following months of parliamentary uncertainty.

In June, the country produced 2.72 million b/d, according to the latest Platts survey. The country looks to struggle with raising its output capacity at a time when producers in the alliance are expected to bring on additional supply.

S&P Global Commodity Insights estimates suggest that Kuwait has under 40,000 b/d of output upside remaining, and the state is quickly running out of output capacity.

The country also has additional potential to bring on supply from the neutral zone it shares with Saudi Arabia, but technical difficulties have so far hampered efforts to fully restore output to pre-shutdown levels.

Kuwait's oil sector has been beset by its political instability, frequent change of government as well as constant reshuffles at the oil ministry and energy institutions.

Without political will and stability, the country has so far struggled to revive the aging giant Burgan field, which is in decline.

Kuwait's geological play is complex and requires significant technical expertise and capital to develop.