Like many oil-reliant countries, Kuwait has faced a challenging few years. The drop in global oil prices hit the country hard: Kuwait derives about 60% of its gross domestic product and more than 90% of its exports from hydrocarbons. It was therefore a welcome development when an international deal was finally struck in November 2016 to temporarily reduce oil production with the aim of rebalancing the market as well as drawing down existing stockpiles.
The deal, the first production cut in eight years, saw oil-producing countries agree to reduce global supply by almost 2 million barrels per day (bpd). By late January 2017, the 13 members of the Organisation of the Petroleum Exporting Countries (OPEC), as well as 11 non-OPEC countries, had cut daily output by more than 1.5 million barrels, out of a total of 1.8 million barrels that was agreed, according to the Saudi Ministry of Energy and Industry. OPEC compliance was more than 90%, while for non-OPEC countries it was estimated at about 50%.
