Image courtesy of Oil Industry News/Wikimedia Commons.

Crude prices fell more than 2 percent overnight as the end of three-day long oil worker strike in Kuwait promises to ramp up global output.

According to the Kuwait News Agency (KUNA), the workers ended their strike on Tuesday and will return to work on Wednesday morning.

The workers had been protesting planned cuts to wages and benefits.

The strike cut Kuwait’s oil production by more than half earlier this week, helping offset investor pessimism after an OPEC production freeze failed to materialize.

OPEC members along with representatives from Russia failed to agree on a production freeze deal after meeting in Doha last weekend.

Saudi Arabia, OPEC’s largest producer, said it would not agree to a freeze unless Iran also signed on to an agreement.

Iran has repeatedly said it will not participate in a production freeze as the country looks to regain market share now that Western sanctions have been lifted.

OPEC production continues to hover above the 30 million barrel per day mark, hitting 32.3 million bpd in March on surging Iranian output, according to Platts.

OPEC trimmed its 2016 global oil demand forecast by 50,000 bpd to 1.54 million bpd on expected weakness in Latin America.

Brent crude prices fell from $44.03 per barrel at the closing bell on Tuesday to a low $42.90 per barrel early Wednesday before climbing past the $43 per barrel mark before the opening bell.

Crude inventories posted a larger than expected increase of 3.1 million bpd last week and stood at 539.5 million barrels, according to data from the American Petroleum Institute seen by Retuers.


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