Oil prices at six-month high
LONDON, May 16, 2016 – Ongoing supply disruptions, especially on account of increased violence in Nigeria’s Niger Delta, have pushed oil prices to fresh highs. On Monday, Brent futures were at USD 49.05 per barrel at 13.00 pm GMT, with WTI crude trading at USD 47.44 per barrel.
Oil prices reaching levels last seen in November 2015 were ascribed to an uptick in Niger Delta violence. In recent weeks, majors Chevron, Shell and ExxonMobil have all seen their production affected. Traders surveyed by Reuters last week put Nigerian crude outages at some 700,000 bopd.
It is also estimated that global consumption will outstrip production in May, Goldman Sachs noted. “The market likely shifted into deficit in May … driven by both sustained strong demand as well as sharply declining production,” the financial services firm said.