Oil prices move up on output loss in Nigeria

16-Apr-09

New York's light sweet crude for delivery in May, moved up to US$50, while London's Brent North Sea crude for May delivery rose to US$52.5. Oil prices have increased on concerns of fresh supply disruption in Nigeria due to a fire at a key Shell pipeline. This has led to a production loss of 180,000 bpd involving a range of companies, just prior to weekly energy stocks report in USA. The loss includes 130,000 bpd for Anglo-Dutch oil giant Shell, 30,000 barrels for French group Total and another 20,000 barrels from various other operators. The fire has been extinguished and repairs of the affected pipeline are underway. Inventories are expected to rise in data released in the weekly US fuel inventories report. Rising crude stocks, already at their highest level since 1993, could indicate even weaker demand in the recession-hit American economy.