Record oil prices should mean boom times for Nigeria’s oil industry, but rising militant violence, labour unrest and years of government neglect cast a shadow over its future. Africa’s largest oil producer saw its two million barrel-a-day production halved last month by an eight-day strike at United States oil major Exxon Mobil.
Oil hit a new record near a barrel on Monday, boosted by a string of bullish factors that include a United Kingdom refinery strike and disruptions to Nigeria’s output that highlight the market’s anxieties over threats to supply. Prices held firm below earlier highs, despite a rally in the US dollar versus the euro and yen.
International concern mounted as world oil prices edged closer to $120 a barrel Wednesday and the world’s top producer called for calm. Analysts said a weakening United States dollar, supply worries in Nigeria and the reluctance of the Organisation of the Petroleum Exporting Countries to increase output have all contributed to the price surge.
A rebel group from Nigeria’s oil-producing Niger Delta said it attacked two major oil pipelines there on Monday in what it called a message to the United States. In an email, a faction of the Movement for the Emancipation of the Niger Delta said its commandos had carried out attacks against the pipelines located at Isaka River and Abonnema River.
Crude oil prices surged above , setting a new record high on Monday because of worries of supply disruptions from major producers and comments by the Organisation of the Petroleum Exporting Countries (Opec) reiterating there is no need to raise output.
Oil prices hit a record high a barrel on Friday as jitters over Nigerian oil supplies outweighed a rally in the dollar and fears of an economic slowdown in giant energy consumer China. United States light crude settled up ,83 at ,96 a barrel, before hitting a record . London Brent crude gained ,49 to ,92.
Gunmen aboard a speedboat attacked a security vessel as it travelled to a major oil industry port in Nigeria’s Niger Delta, killing a Nigerian sailor, security sources said on Thursday. About 15 unknown gunmen attacked the vessel late on Wednesday as it travelled along the Bonny river towards Onne.
Britain’s FTSE 100 index dipped by mid-session on Monday as concerns of a looming United States recession offset gains in oil shares, HSBC and potential bid target Friend Provident. By 1201pm GMT, the FTSE 100 was down 6,6 points at 5 693,3, well off its day’s high of 5 718,8.
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/ 4 February 2008
Three soldiers and eight militants were killed in a gun battle at an oil pipeline hub operated by Royal Dutch Shell in Nigeria’s southern state of Bayelsa, the navy said on Sunday. Shell said the Tora manifold, which sends oil to the Bonny export terminal, was not damaged in the attack late on Saturday.