Kuwait has halted output at select oil fields after storage capacity was reached and is evaluating broader cuts to production and refining to match domestic consumption, with a final decision expected within days.

Major storage hubs in Saudi Arabia and the UAE are projected to hit capacity limits in under three weeks, raising the risk of costly shutdowns that can damage reservoirs and delay restarts for days or weeks.

Bank of America warns that a large, persistent energy price shock could weaken consumer spending, trigger higher delinquencies and equity selloffs, and keep Federal Reserve monetary policy on hold before potentially turning more dovish if demand softens.