Oil prices rise by over one dollar amid violence in Nigeria

07-Nov-06

Light, sweet crude for December delivery climbed by US$1.21 to US$60.35 a barrel on the New York Mercantile Exchange. December Brent crude on London's ICE Futures exchange rose to US$59.70 a barrel. Oil prices rose by over one dollar per barrel as armed protesters shut down one of Nigeria's oil facilities run by Agip, a subsidiary of Italian energy company ENI SpA. Supporting the rise was a statement by Nigerian oil minister and OPEC President Edmund Daukoru that the oil cartel may need to further cut its output as falling prices clearly indicate that market is clearly oversupplied. The effects of the reduced output by OPEC on Nov 1, is expected to show soon. OPEC could discuss production when it meets in December.