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Guerrillas and Rebels Do for Oil Market What Producers Couldn't

  • Short-term disruptions take out 800,000 barrels/day of supply
  • Outages have driven rally in crude prices since February
Two men stand on storage tanks during a tour of the Musket Corporation Windsor Terminal (a truck to rail facility) in Windsor, Colorado, U.S., on Wednesday, April 2, 2014.
Photographer: Matthew Staver/Bloomberg
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Leftist guerrillas in Colombia, rebels in Libya and militants in Nigeria are succeeding where the world’s biggest oil producers failed, helping keep a 1.5 million-barrel crude surplus from expanding.

While Saudi Arabia, Russia and other major producers couldn’t agree on a production freeze earlier this month, disruptions ranging from pipeline attacks to field shutdowns have taken 800,000 barrels a day of crude supply offline this year, according to energy-industry consultant FGE. As the collapse in oil prices cuts their revenue, producers in some parts of the world are finding it harder to keep supplies flowing, according to Citigroup Inc.