Oil surges on Nigeria unrest

30/06/2009

Crude oil prices continued to rise in New York this morning (June 30th) as concerns about Nigerian production grow in the wake of intensified attacks on foreign-owned installations in the Niger Delta region.

After a subdued start for crude and distillates such as heating oil, petroleum commodities trading on the New York Mercantile Exchange surged after Shell confirmed that rebels had launched an attack against a cluster of oil wells in the Estuary field in Nigeria.

The country's main rebel group, the Movement for the Emancipation of the Niger Delta, said that they had attacked the Forcados offshore facility, causing a "massive" explosion and setting parts of it on fire.

Shell confirmed that it halted production at the facilities.

Following the announcements, crude prices surged back above $71 (£42) a barrel yesterday, while heating oil also moved upwards sharply.

The spike has continued this morning, with crude breaching the $72 barrier in electronic trading.