Global crude oil supply outage
According to the EIA, the global crude oil supply outage increased by 18,000 bpd (barrels per day) to 1,793,000 bpd in March 2018—compared to the previous month. However, supply outages declined by 551,000 bpd or 24% year-over-year.
Global crude oil supply outages were near a four-month high in March 2018. Brent and WTI oil prices have risen ~67% and ~61%, respectively, since June 21, 2017, partly due to supply cuts and a rise in global oil production outages.
The United States Brent Oil ETF (BNO) tracks Brent crude oil futures. The United States Oil ETF (USO) follows US crude oil futures. BNO and USO have risen ~73% and ~60%, respectively, since June 21, 2017.
Highs and lows
Global crude oil supply outages hit ~1,540,000 bpd in January 2012—the lowest level since 2011. On the other hand, supply outages reached ~3,673,000 bpd in May 2016—the highest level since 2011. Brent oil prices increased 12.4% in May 2016 from April 2016 partly due to production outages.
OPEC, non-OPEC, and oil supply outages
OPEC producers’ oil supply outages decreased by 15,000 bpd to ~1,215,000 bpd in March 2018—compared to the previous month. Libya, Iraq, Kuwait, Saudi Arabia, and Nigeria had the most supply outages among OPEC producers in March 2018.
Non-OPEC oil producers’ supply outages increased by 33,000 bpd to 578,000 bpd in March 2018—compared to the previous month. Canada, Yemen, and Sudan had the most supply outages among non-OPEC producers in February 2018.
Impact of global crude oil supply outages
Global supply outages averaged ~2.7 MMbpd (million barrels per day) and 2 MMbpd in 2016 and 2017, respectively. Supply outages could increase in 2018 due to geopolitical tension and the weather.
Next, we’ll discuss US crude oil exports.