Crude Oil Rises on Nigerian Supply Outages
January 16, 2006
The price of high-quality crude oil rose Monday on news that violence in Nigeria has cut that nation’s crude oil production by 10 percent.
A unit of the Royal Dutch Shell Group PLC pulled hundreds of workers out of the area after continued kidnappings and vandalism resulted in a loss of about 220,000 barrels per day of production.
Brent crude oil for February delivery in London trading rose as much as 92 cents to $63.18 a barrel.
Also adding to traders’ concerns was the continuing standoff between Iran and western powers over the Islamic republic’s nuclear ambitions.