Oil Prices: Reduced Supply and Low U.S. Inflation Drive Market to 10-Week High
Oil Prices Surge to 10-Week High Amidst Reduced Supply and Low U.S. Inflation. Introduction In a boost to the energy market, oil prices reached a 10-week high due to a combination of reduced supply and low U.S. inflation. The ongoing disruptions in Libya and Nigeria, along with the decline in U.S. inflation, have contributed to the surge in oil prices. This article delves into the factors driving the recent increase, market dynamics, and the implications for the global oil industry. Reduced Supply And Ongoing Disruptions Supply Constraints In Libya And Nigeria Tribal protests over the abduction of a former minister led to the shutdown of several oil fields in Libya, including the nation’s second-largest field, Sharara. This disruption, combined with Shell PLC’s (LON: SHEL) decision to halt petroleum loading at the Forcade’s facility in Nigeria due to a potential pipeline break, has further constrained the global oil supply. Impact Of Production Cuts And OPEC’s Monthly Report Russia a