Oil from Africa comes with political instability

A new Bank of America report shows Africa provided more oil to the U.S. market in 2005 than the Middle East.

The Bank of America report warns that Africa suffers from political instability that also has raised U.S. concerns about the reliability of supplies from the Middle East. The report says the growing reliance on African producers is not making the U.S. supply network more secure.

“Unbeknownst to many U.S. investors, America has become increasingly exposed to an unexpected or sudden drop in African oil production due to its greater reliance on African oil,” Joseph Quinlan, chief market strategist at Bank of America, writes in the April 20 report.

USA Today