Kuwait was about to finalize a deal with U.S. based Dow Chemicals on a joint venture to produce oil. However, Kuwait has now given into pressure from the people of Kuwait and from politicians who questioned the venture, and has hence backed out of the deal.  Kuwait would have had a USD $7.5 billion (43%) stake in the $17.4 billion venture. The oil rich Arabian country also noted low volatile oil prices as part of its decision to back away from the K-Dow Petrochemicals venture. The deal was scrapped by the Supreme Petroleum Council of Kuwait. In addition, according to Reuters, if Kuwait backed out of the deal in 2009, it would have had to pay a $2.5 billion penalty.