‘Slow-Motion Supply Shock’ Adding to Oil Woes, House Told

WASHINGTON (Dow Jones) — A “slow-motion” supply shock is helping to fuel soaring oil and gas prices, a top energy analyst told House lawmakers.

While surging demand and refining bottlenecks have also played a role in surging oil and gas prices, production disruptions in Nigeria, Venezuela, Iraq and the U.S. Gulf have contributed to a “a slow-motion supply shock — an aggregate disruption that, at present, we would put at 2.2 million barrels per day,” said Cambridge Energy Research Associates Chairman Daniel Yergin, in testimony prepared for delivery to the House Energy and Commerce Committee.
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