CNNFN writes article about Force behind oil’s rise: sabotage by terrorists:
by Matt Egan @mattmegan5 March 29, 2016: 10:36 AM ET
Is oil done crashing?
Is oil done crashing?
Oil prices have surged on hopes of a freeze in global production. But a more
hidden factor is also fueling the price spike: terror attacks on oil
facilities.
Sabotage to key oil pipelines have driven global supply outages to
“elevated” levels estimated at more than 3 million barrels per day,
according to the Royal Bank of Canada.
For instance, last month a critical pipeline in Nigeria was bombed,
taking around 250,000 barrels of crude offline until May.
Extremist groups pose a “clear and present danger” to energy
facilities, especially those in oil-rich North Africa, RBC wrote in a
recent research report.
Oil prices have rallied recently to around $40 today from $26 a
barrel in mid-February. The sharp rise has been largely attributed to
an effort to “freeze” oil output by Saudi Arabia, Russia and other
producers. Investors are also betting U.S. production will decline
sharply in 2016.
But geopolitical jitters and supply outages are also playing an
important role. That’s a change from much of the past two years when
these concerns were overshadowed by the epic supply glut and
CNNFN Article Source Here.