Unplanned global oil supply disruptions reach record high
Unplanned oil supply disruptions across the world reached a record high last month.
Disruptions averaged at more than 3.6 million barrels per day (b/d), the highest monthly level recorded by the US Energy Information Administration (EIA).
From April to May, disruptions grew by 0.8 million b/d as increased outages, largely in Canada, Nigeria, Iraq and Libya, more than offset reduced outages in Kuwait, Brazil and Ghana.
The EIA added the rise in disruptions along with other factors such as rising oil demand and falling US crude oil disruptions contributed to a month-over-month $5 (£3.45) per barrel increase in spot prices in May.
Disruptions tied to political disputes and conflicts in nations including Libya, Nigeria, northern Iraq, South Sudan and Yemen accounted for nearly 90% of unplanned disruptions in the first five months of 2016.
However it forecasts global supply outages to decrease this month “because most of the recent outages, particularly in Canada, have already started to subside”.