Receive our newsletter – data, insights and analysis delivered to you
  1. News
April 18, 2016

Oil prices rise as crude output declines due to strike by Kuwaiti workers

Oil prices have increased following a fall in crude production due to a strike by oil workers in Kuwait.

Oil prices have increased following a fall in crude production due to a strike by oil workers in Kuwait.

Brent crude futures were up 40 cents and traded at $43.31 a barrel, while the US crude futures increased 33 cents at $40.11 a barrel, Reuters reported.

The work stoppage by Kuwaiti oil workers protesting against planned public sector pay reform caused the output to fall by 60% to around 1.1 million barrels a day.

"Venezuela hopes to increase oil exports to 2.3 million barrels per day in 2016."

Oil workers have launched the strike protesting cuts in pay and benefits as Middle Eastern crude exporters cut subsidies and government handouts.

However, according to analysts, the OPEC member’s disruption may be brief and investors’ focus would be on the market’s supply glut again following the collapse of a meeting by major oil exporters to agree to freeze output at January levels.

After Saudi Arabia demanded Iran to sign up, the output freeze proposal fell apart.

Content from our partners
Green investment: What gives Scotland multiple advantages
How the North of Tyne region is leveraging its legacy to define its future

Reuters quoted Russia’s deputy energy minister Kirill Molodtsov saying that the country plans to increase oil production in 2016. In 2015, the country produced 534 million tonnes of oil.

OPEC member Venezuela hopes to increase oil exports to 2.3 million barrels per day in 2016, adding to the already oversupplied market.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU