Oil Surges Toward $71 On Nigeria Attack

Reuters ^ | June 25, 2009

[Steelfish]

Oil Surges Toward $71 on Nigeria Attack

By REUTERS Published: June 25, 2009

LONDON (Reuters) - Oil prices rose more than $2 to near $70 a barrel on Thursday after Nigerian rebels attacked a Royal Dutch Shell pipeline, raising worries about supply from the OPEC-member nation.

Crude also got a lift as Wall Street rallied on hopes for an economic recovery and as gasoline futures rebounded heading into the peak of the U.S. summer driving season.

U.S. crude futures for August rose $2.18 to $70.85 a barrel by 1730 GMT. London Brent crude rose $2.09 to $70.42 a barrel.

In the latest in a string of attacks in Nigeria, Africa's biggest oil producer, the Movement for the Emancipation of the Niger Delta (MEND), said it had sabotaged the Billie-Krakama pipeline in Rivers State, which supplies one of the country's main export terminals.

Attacks by MEND have forced foreign oil companies, including U.S. oil major Chevron and Italy's Agip to shut at least 133,000 barrels per day of oil production in the last month.

Shell said it had shut down one of its pipeline junction points on Thursday but declined to say whether any oil production had been affected.

[Diana in Wisconsin]

http://www.gasbuddy.com/ (Find the cheapest gas in your ‘hood.)

I read an article earlier today that our economy can survive $80 oil.

But then, we finally fall over the cliff...

Thanks again, 0bama!!

[Man50D]

Yeah right. It’s the Nigeria attack. There are tankers sitting out in the north Atlantic solely to store excess oil that can’t be sold on the market due to lack of demand and we’re supposed to believe that cr*p.

[TLI]

I read the info at blumberg.com/energy. It reports the attack was on a pipeline manifold but “it could not be determined” if the flow had been interrupted.”

So, they know the exact component that was hit but “don’t know” if it actually interrupted anything.

I suppose they don’t have hand held satellite phones in Nigeria or something.

[cookcounty]

"This changes U.S. inventories by how much?"

It isn't one-for-one. In a shortage, prices rise as long as there is a shortage, until enough people decide they can't afford it and drop out of purchasing.

[cookcounty]

"Yeah right. It’s the Nigeria attack. There are tankers sitting out in the north Atlantic solely to store excess oil that can’t be sold on the market due to lack of demand and we’re supposed to believe that cr*p."

Not all speculators are as brilliant as you. Why don't you short the market right now and makesome cash???

[freekitty]

Nigeria is a screwed up country and always has been a screwed up country.

[Red in Blue PA]

What percentage of the world’s oil comes from Nigeria????

What BS!

[jiggyboy]

Oil prices rose more than $2 to near $70 a barrel on Thursday after Nigerian rebels attacked a Royal Dutch Shell pipeline, raising worries about supply from the OPEC-member nation.

Aw ain't that cute, he wants us to think oil trades on supply and demand concerns. WHO'S a GOOD little economic writer!