Crude oil rose more than $2 on Friday as rebel attacks hit a pipeline in Nigeria and strikes at an Exxon Mobil refinery in Africa and an Ineos Group refinery in Scotland may reduce supplies to the market.
In Nigeria, the Movement for the Emancipation of the Niger Delta declared they detonated a Royal Dutch Shell pipeline at Kula in River state on Thursday night, the group said in an e mailed statement. The company confirmed the attack. This is the second attack this week. So far 4 pipelines have been affected.
Our candid advice to the oil majors is that they should not waste their time repairing any lines as we will continue to sabotage them, the MEND said in an emailed statement according to Bloomberg.
Nigeria is a member of the Organization of Petroleum Exporting Countries. According to Petrologistics Ltd., due to the circumstances in Nigeria, oil supply may have fallen 0.3 percent to 32.5 million barrels a day this month from OPEC, Bloomberg noted.
Crude futures for delivery in June rose $2.67 or 2.30 percent to $118.73 a barrel on the New York Mercantile Exchange by 12:23 p.m. today. Prices hit a record high of $119.90 on Tuesday triggered by a falling dollar.
Also in Nigeria, a labor strike at Exxon Mobil drove the firm to shut down production of about 200,000 barrels a day , a senior official said according to Reuters.
In Europe, a labor strike will begin in April 27 in Grangemouth refinery in Scotland. It caused BP to shut down the Forties pipeline through which 700,000 barrels of crude flow daily.
Brent crude futures in the London ICE Futures Exchange traded $3.12 or 2.73 up by $117.38 a barrel.