Since plummeting to 13 year lows in February oil prices have seen a big bull market with prices nearly doubling to its level of 50.70 for Brent & 50.30 for WTI Crude.
This has been aided by either production declines or supply glitches in many oil producing countries.
Nigeria for one have been experiencing big problems with a militant group calling themselves Niger Delta Avengers.
For the last 4 months they have been prowling the swamps of Nigeria’s petroleum-rich south, bombing pipelines and diving underwater to destroy equipment, committed to reducing Africa’s once top oil producer’s production to zero.
This has certainly had a significant effect of cutting the amount of oil in global markets.
US Crude Oil production has slowed recently too as a result of a major cutting in investments, while there is continued bullish sentiment that both India & China will continue to soak up any excess oil sloshing around the world.
All of this has resulted in a view that global oil supply could even turn into a deficit for the remainder of 2016, meaning that we could prices continue to rise for the foreseeable future.