Oil prices stand still amid Kuwait worker strike
During Tuesday’s Asia trade oil almost stood still, following the strike of oil workers in Kuwait. Furthermore, outages in other parts of the world also renewed a hope for a smaller global oversupply.
In New York May delivery sweet light crude futures were worth $39.74, a $0.01 surge. June Brent crude futures in London dipped $0.15, trading at $42.75 per barrel.
On Sunday, Kuwait’s nationwide strike hurt up to 60% of the country’s oil output. Other than chronic outages in South Sudan, Yemen and Iraq, key pipeline outages in Nigeria as well as oil strikes in Kuwait have considerably reduced production for recent weeks.
The strike could potentially generate output descend to one million barrels a day. In March, Kuwait produced up to 2.7 million barrels a day, based on data offered by the OPEC.
On Monday, crude prices edged down 7%, thus reacting to an unsuccessful deal as for an output freeze in Doha. It’s so sad, but the deal was broken at the last minute of Sunday’s gathering. Unfortunately, Saudi Arabia didn’t want to join the pact pointing out to Iran’s refusal to do the same.