Beyond the situation in Libya, there are three further supply disruptions hampering global oil output and keeping prices high right now.From Societe Generale’s Michael Wittner:
In Yemen, where the political unrest has been escalating, tribal groups attacked a key pipeline two weeks ago. The pipeline feeds the Ras Issa export terminal on the Red Sea coast of Yemen, and usually carries around 115 kb/d of Yemen’s 270 kb/d of production. Though it was shut down two weeks ago, it was only recently reported in the oil trade press that the line was still down, contrary to initial expectations that it would be quickly repaired. In addition to the roughly 110-120 kb/d outage in Yemen, another 110-120 kb/d was shut down on Friday in Gabon, representing around half of the country’s production; this was due to a labour strike.
In addition, there’s a third supply problem emerging in Kuwait. The country has had to stop exports because of a sandstorm in the country, according to Arabian Business. Considering the source of this stoppage, it should be short lived.
U.S. crude futures have fallen back a bit from this morning’s highs; Brent is trading at a little above $118.