What's going on?

Attacks on oil facilities in one of the world�s larger oil-producing countries, Nigeria, continue to dampen its oil output. And as global supply goes down, the price is going up.

What does this mean?

A group called the Niger Delta Avengers has been increasingly bombing pipelines and other oil infrastructure. As a result, Nigeria�s oil production has declined sharply. This comes after raging wildfires in Canada caused a decline in oil production there. At the same time, the US dollar has weakened versus other currencies (a trend that was re-established following Friday�s disappointing US jobs report); and as the dollar goes down in value, it pushes up the price of oil, which is denominated in dollars (Why? Click here for an explanation). The result has been a continued move higher in the oil price towards $50/barrel (up from its low of $26/barrel in February).

Why should I care?

For the market: Oil producers are winning – for now. Remember all that concern a few months ago about US oil companies? Well, many went bankrupt! But those that didn�t are breathing a sigh of relief and, at the current oil price, have a much greater chance of being profitable. However, it�s not quite that simple. If everyone starts producing more oil again now that the price is higher, then the oil supply will rise – and, as we know, more supply generally puts downward pressure on prices. Still, other factors, like supply reductions by other oil-producing countries and/or a jump in global demand, could push the oil price higher.

For you personally: Gas prices are low but climbing – in all major economies. Part of this is seasonal: gas prices go up in the summer as people tend to drive more (think: classic American roadtrip� or Eurotrip�). But it�s also simply because the oil price has gone up. So expect to spend more of your money filling up your car (if you have one) or being affected some other way (like Uber prices going up perhaps?!).