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Kuwait Crude Output Drops 60% as Oil Workers Strike

[kmapp]

Kuwait’s crude production tumbled by 60 percent and its refineries scaled back operations as the state oil company took emergency measures to cope with the first day of an open-ended labor strike.

The OPEC member’s production dropped to 1.1 million barrels a day, Saad Al-Azmi, deputy chief executive for finance and spokesman at Kuwait Oil Co.,

Kuwait produced 2.81 million barrels a day last month, making it OPEC’s fourth-largest member, while worldwide supply exceeded demand by 1.6 million in the first quarter, according to the International Energy Agency.

 

‘Shocking’ Decline

The plunge in Kuwait’s output “is just shocking,” Edward Bell, a commodities analyst at Dubai-based bank Emirates NBD PJSC, said Sunday by phone. “That would take care of the surplus right there. There could be quite a bit of upside in oil tomorrow.”  

Full article at:

https://www.bloomberg.com/news/articles/2016-04-17/kuwait-refineries-operating-after-it-says-oil-workers-walked-out

This drop in output of over 1.7 million barrels a day from Kuwait just started and combined with the talks ongoing about a freeze agreement that may finalize later today with a positive outcome it will be interesting to see how all this affects the price of oil over the next week? I believe we are finally at a turning point in the world oil markets although many things could cause this to go off the rails yet? I am worried about the looming credit review for LTS which may cut short LTS's life span and that they won't be around long enough to finally recover? Let's hope they do. kmapp