Oil-producing governments across the world are scrambling to address petroleum outages that have taken nearly 2 million barrels a day off the market and sent crude prices rallying.  The outages have been caused by an oil-worker strike in Kuwait, alleged pipeline sabotage in Nigeria and payment disputes in Iraqi Kurdistan. The missing oil supply—about 1.85 million barrels a day—has essentially brought the oil market’s supplies back into balance with demand, if only temporarily, and raised questions about big producers’ ability to quickly ramp up during supply outages.  The situation offers a glimpse of what the oil market would look like if the current glut were to end after nearly two years of weighing on prices. Oil demand is expected to average 94.8 million barrels a day in the first quarter of 2016 compared with oil supply of 96.4 million barrels a day.

View full article at www.wsj.com