Kuwait Oil Production Halved Amid Ongoing Strike by Oil Workers

Kuwait's oil production has taken a significant hit due to an ongoing strike by Kuwaiti oil workers, which began on Sunday and entered its third day. According to a Kuwaiti official, daily oil production fell to 1.5 million barrels on Tuesday, down from the usual 3 million barrels per day.

The strike was called in protest of proposed government cutbacks as the Gulf country struggles with a prolonged slump in oil prices. The Kuwaiti government has introduced a new payroll scheme for all public employees, which would include automatic cuts in wages and incentives for the country's 20,000 oil workers.

The Kuwait Oil Company's headquarters is located in Ahmadi, where thousands of workers gathered at the start of the local work-week. The head of the Kuwait Union of Chemicals, Farhan al-Ajami, said the labor action had been 'more successful than expected', with a steadily increasing number of strikers.

OPEC's fourth-largest oil producer is currently manufacturing 3 million barrels per day. The strike could cost the national oil sector as much as $48 million in daily losses, warned Wafaa al-Zaabi, chief executive of the Kuwait Petroleum Corporation.