Oil prices slide more than 2% as Kuwait workers call off 3-day strike
2016-04-20
Crude oil prices retreated early Wednesday after Kuwait oil workers called off a three-day strike, a key support that kept oil prices afloat after major global producers failed to agree to a production freeze last weekend.
According to Kuwait News Agency, the strike organizer Oil and Petrochemical Industries Workers Confederation said the strike was “overwhelmingly successful” through which participants displayed their “ability to affect the production process which was achieved.”
The strike reduced around 60% of the country’s daily production to around 1.1 million barrels a day, said BMI Research.
“The end of the strike removes one of the key supports that allowed prices to recover easily after the disappointing outcome of the Doha talks,” said Tim Evans, a Citi Futures analyst.
“At a minimum, the relatively quick resolution of the strike will test whether traders remain eager to buy on dips or whether we see a cycle of long liquidation,” he added.
Xinxiang Kolanky fouses on oilfield chemicals production for over 20years, due to the severe market we are suffering, we have spend a tough 2015, but we still believe 2016 will be better, the market will be better.
