The price of Kuwaiti oil sunk to $20.2 a barrel on 18 January, its lowest level in 13 years, according to a statement made by the state-owned oil company Kuwait Petroleum Corporation (KPC).

Low oil prices have prompted Kuwait’s government to review public spending and subsidies.

According to the Norwegian consultancy Rystad Energy the average cost of production for Kuwaiti oil is $8.5 a barrel.

This includes operating costs as well as capital costs, which includes money spent on explorations.

However, in order to balance its budget Kuwait needs much higher prices.

Kuwait will run a budget deficit if the average oil price is less than $49.4 a barrel over 2016, according to the International Monetary Fund.