Oil futures dip after Kuwaiti oil workers finish strike
On Wednesday, crude futures sagged after Kuwaiti oil workers finished their three-day strike, which had cut crude output in this Middle Eastern country. Furthermore, last week American stockpiles soared.
Brent crude futures edged down 68 cents, trading at $43.35 per barrel. US crude lost 85 cents, trading at $40.23.
Because of that strike, Kuwait Oil Company had to diminish its output to about 1.1 million barrels a day from the previous level of 3 million barrels. However, on Tuesday, the company recovered its production to 1.5 million barrels.
Besides this, the end of the strike also revived the bearish sentiment brought on by the failure of key producers to come to a mutually beneficial agreement on Sunday as for an output freeze to fight an everlasting market imbalance, which should be blamed for a tumble in crude prices in 2014.
In the nearer future, the oil market is expected to see more downward pressure rather than upward.
Contributing to the bearish sentiment, the data released by the American Petroleum Institute also unveiled that last week American oil stocks surged more than expected.