Oil prices rally on supply fears

Published February 9, 2008

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

Opinion

Editorial

Strange claim
Updated 21 Dec, 2024

Strange claim

In all likelihood, Pakistan and US will continue to be ‘frenemies'.
Media strangulation
Updated 21 Dec, 2024

Media strangulation

Administration must decide whether it wishes to be remembered as an enabler or an executioner of press freedom.
Israeli rampage
21 Dec, 2024

Israeli rampage

ALONG with the genocide in Gaza, Israel has embarked on a regional rampage, attacking Arab and Muslim states with...
Tax amendments
Updated 20 Dec, 2024

Tax amendments

Bureaucracy gimmicks have not produced results, will not do so in the future.
Cricket breakthrough
20 Dec, 2024

Cricket breakthrough

IT had been made clear to Pakistan that a Champions Trophy without India was not even a distant possibility, even if...
Troubled waters
20 Dec, 2024

Troubled waters

LURCHING from one crisis to the next, the Pakistani state has been consistent in failing its vulnerable citizens....