Global crude oil supply has suffered significant disruption in recent weeks from sabotage in Nigeria, fires in Canada, and political failure in Venezuela, supporting a rise in prices to nearly $50 a barrel. By some accounts the supply disruptions have reduced the previous surplus and will allow a rebalancing of global inventory if supply remains constrained.
Global Crude Inventory Now Appears Stable
For decades the market has relied upon OPEC to increase production after a supply-shock to keep crude consumers well-supplied. The OPEC Thanksgiving 2014 decision not to restrict, and the Saudi Arabian decision to increase, production has allowed crude oil inventory to grow with a parallel decline in price.
