Kuwait Oil, Gas Workers End Three-Day Strike: Local Newspaper

Kuwaiti oil and gas workers have ended a three-day strike that had temporarily cut the OPEC member’s crude production by nearly half, local newspaper Al Jarida reported late on Tuesday, citing the trade union.

News that the strike was over came just hours after Kuwait’s oil minister had ruled out negotiations with the employees until they stopped their action, while one of the union leaders said the thousands of workers would hold out until planned public sector pay cuts were canceled.

U.S. oil prices fell slightly after the news. Oil markets had rallied this week as the strike forced Kuwait Oil Company to cut output to as little as 1.1 million barrels per day (bpd), down from a normal level of about 3 million bpd. By Tuesday output had recovered to around 1.5 million bpd.

Workers fear reduced salaries, benefits and staff layoffs will be part of a planned government overhaul of the payroll system in the public sector.

Reuters

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.