AFX Europe (Focus): Oil - Brent higher on threat of nationwide strike in Nigeria, supply fears: “Crude oil prices pushed higher after the leader of Nigeria's Labour Congress announced that a threatened nationwide general strike against rising fuel prices will begin Monday after talks with authorities collapsed.”: “The news offset an earlier announcement by union officials in Nigeria that a two-day strike by Shell workers is to end as planned, which had allowed oil prices something of a breather.” (ShellNews.net)
Posted 9 Oct 2004
LONDON (AFX) - Crude oil prices pushed higher after the leader of Nigeria's Labour Congress announced that a threatened nationwide general strike against rising fuel prices will begin Monday after talks with authorities collapsed.
The news offset an earlier announcement by union officials in Nigeria that a two-day strike by Shell workers is to end as planned, which had allowed oil prices something of a breather.
At 5.30 pm, Brent crude futures were up 0.40 at 49.30, with the day's high standing at 49.40. Benchmark crude in New York was up 0.08 at 52.75 usd after reaching a high of 52.87.
Prices had fallen back "apparently in response to the calling off of a brief wildcat strike in Nigeria," but most market players viewed this as no more than a "temporary respite", said Finmat Futures analyst Mike Fitzpatrick.
Nigeria, Africa's largest and the world's sixth biggest exporter of crude oil, acounts for a daily output of some 2.3 million barrels, while Shell's Nigerian arm is the biggest player in the country's production and exports.
Various factors continue to support oil prices and analysts maintain there is still every likelihood that they will continue to push higher.
"Given the current environment, any supply disruption or even the threat of one could ignite a rally," Fitzpatrick said.
The Louisiana Offshore Oil Port (LOOP) was closed again today due to bad weather, with production "still struggling to return" after being hard hit by Hurricane Ivan two weeks ago, he said.
Additionally, a strike by rig workers in Norway is expected to keep as much as 55,000 barrels per day off the market.
"At first glance this amount may seem insignificant, but... with supply and demand roughly in balance, not one drop can be spared right now," he said.
And the blasts near the Indonesian embassy in Paris and at an Egyptian resort aimed at Israeli tourists will do nothing to ease security concerns ahead of the weekend.
"The next pipeline explosion puts 60 usd (for US crude) further within reach," Fitzpatrick said.
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