Oil prices pared losses on Monday after a workers' strike in Kuwait slashed the country's oil output by more than half, offsetting worries about a scuttled plan by major oil producers to freeze production.
The strike cut more than 60 percent Kuwait's crude output, lending support to price benchmarks such as Brent and Dubai. Supply of refined oil product from the country also tightened due to scaled-back refinery runs and lower fuel exports.
Brent tumbled as much as 7 percent earlier on Monday after oil majors from the Organization of the Petroleum Exporting Countries and non-OPEC Russia failed to reach agreement on a plan to freeze output.
Analysts, however, said Kuwait's disruption would likely be brief and investors would soon focus back on the market's oversupply given the failure of major exporters on Sunday to agree to freeze output to avoid worsening the glut.
Oil rises 3 percent as Kuwaiti strike cuts output for third day
Analysts, however, said Kuwait's disruption would likely be brief and investors would soon focus back on the market's oversupply given the failure of major exporters on Sunday to agree to freeze output to avoid worsening the glut.
Kuwait strike ends
The end of Kuwait's oil industry strike revived the bearish mood brought on by the failure at the weekend by major crude producers to agree to freeze output at a meeting in Doha, Qatar.
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