LONDON, Feb 8: Oil prices rose strongly on Friday on supply disruptions in Nigeria, Africa’s biggest exporter, and expectations of colder weather in key energy consumer the United States, traders said.
New York’s main contract, light sweet crude for delivery in March, jumped $1.13 to $89.24 per barrel.
Brent North Sea crude for March delivery climbed $1.15 to $89.66.
“Prices are rising on back of Nigeria supply disruption,” said Barclays Capital analyst Kevin Norrish.
“In addition, US weather forecasts indicated that temperatures in the (US) northeast would fall below normal next week leading to speculation that US heating fuel demand would rise.”
Energy giant Shell said on Thursday it would not be able to honour all its export contracts from its southern Nigerian Bonny export terminal for the rest of February and March because of sabotage.
The company said it had not been able to repair three pipeline leaks on the Nembe Creek trunk because of “serious security challenges.”
It did not give figures on the expected loss in production but industry sources estimate thousands of barrels of crude will be lost.
Shell is Nigeria’s largest oil operator, accounting for around half of the country’s daily output of 2.6 million barrels at peak production, but unrest in the Niger Delta has slashed production by a quarter since January 2006.—AFP
