<p>This may be rather late, but it seems from <a href="http://money.cnn.com/2016/05/17/investing/oil-crude-prices-rally/index.html" rel="nofollow noreferrer">an article at the time</a> that this was due to supply disruptions in Canada, Nigeria, and Venezuela. Canada was experiencing wildfires which shut down oil production, Nigeria suffered from attacks in the Niger Delta (the main source of Nigerian oil), and Venezuela was experiencing severe political crisis. With a supply decrease, oil prices were bid up.</p>

CC BY-SA 3.0
2018-04-19T14:46:11.370Z
2018-04-19T14:46:11.370Z
the_evictor
<p>Why is the oil price and correspondingly the down and midstream company stock prices are increasing in May 2016, when</p>

<ol>
<li>The economic data across the world in weak </li>
<li>China's economy is
sluggish. They had another round of devaluation in early May 2016.</li>
<li>The
OPEC meeting in Doha in late April did not yield any meaningful
resolution in stemming the production of oil output.</li>
</ol>

<macroeconomics><commodities><oil>
Why is oil price increasing in May 2016
rambalachandran
# Why is oil price increasing in May 2016

(Asked by: username_0 on 2016-05-04)

Why is the oil price and correspondingly the down and midstream company stock prices are increasing in May 2016, when

1. The economic data across the world in weak
2. China's economy is
   sluggish. They had another round of devaluation in early May 2016.
3. The
   OPEC meeting in Doha in late April did not yield any meaningful
   resolution in stemming the production of oil output.

**Tags:** macroeconomics, commodities, oil

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## 1 answers

### Answer by username_1 on 2018-04-19. Score: 1

This may be rather late, but it seems from [an article at the time](http://money.cnn.com/2016/05/17/investing/oil-crude-prices-rally/index.html) that this was due to supply disruptions in Canada, Nigeria, and Venezuela. Canada was experiencing wildfires which shut down oil production, Nigeria suffered from attacks in the Niger Delta (the main source of Nigerian oil), and Venezuela was experiencing severe political crisis. With a supply decrease, oil prices were bid up.


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