The outages start to hurt
The market has at last noticed the mounting supply-side problems, which are now pushing up oil prices
AFTER the failure of the Doha oil-producer meeting in April you might have thought crude prices would plummet. Saudi-Iranian rivalry has for now thwarted any attempt at capping Opec supply. But Brent futures rallied, rising from around $42.77 a barrel on 18 April – the day after the Doha meeting – to just under $49/b on 17 May. WTI has also strengthened, reaching more than $47/b in mid-May, up from around $30/b in January. Futures look certain soon to enjoy a $50 handle. An old market chestnut, seemingly forgotten in the glut, is the reason: unplanned production outages. Together, they have offset some of the effect of rising Opec supplies. Wildfires in Alberta took an estimated 1.2m b/d of
Also in this section
2 April 2026
Alongside a rapid continued build-out of renewables, China’s latest five-year plan stresses the value of domestic hydrocarbon production for energy security and calls for increased Russian gas imports
2 April 2026
The government is taking important steps to revive domestic production, lift investment and benefit from the geopolitical crisis even if more needs to be done in the longer term
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
