New test awaits oil as prices rise

Clouds of smoke from wildfires hang over the Canadian town of Fort McMurray; oil leaks from sabotaged pipelines at Nigeria’s Forcados terminal; Venezuela runs out of money to buy oil to mix with its own heavy crude for export; Kuwaiti petroleum workers go on strike over pay; and an Indian tanker is turned around after attempting illegally to export oil from eastern Libya.

These five disparate incidents are linked in two ways. They, and other disruptions, have removed about 2.5 million barrels per day of oil supply, bringing the market closer to balance after two years of glut. Oil prices, which dropped to as low as US$27.50 per barrel in January, rebounded to close to $50 per barrel last week.

http://www.thenational.ae/business/energy/new-test-awaits-oil-as-prices-rise