| Oil prices shoot up over Iran sanctions, Nigerian rebel attacks |
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NEW YORK: Crude oil prices went up to a three-month high Tuesday, crossing $65 a barrel as fears of disruption in shipments from Iran and Nigeria loomed large and reports came in that global oil demand for 2006 will be higher.
While Iran in embroiled in a controversy over its nuclear intentions, which could lead to financial sanctions against it, Nigerian militants are stepping up attacks on oil companies in the country with an intention to completely stop oil production in the days to come. And a report is just out showing that global demand for oil will go up 2.2 per cent this year.
In New York, March Brent rose 48 cents to $65.38 a barrel, while U.S. light crude gained 46 cents to $66.77 a barrel. In Tokyo Commodity Exchange, Asia's biggest energy futures market, oil for June delivery rose by an exchange-imposed limit of 1,200 yen to 44,160 yen a kilolitre ($60.72 a barrel) Iran is the third- largest supplier of oil to Japan, where cold winter is increasing the demand for fuel.
Nigerian militants claimed they had attacked facilities managed by Total and Agip. Chevron facilities are the next targets. The Movement for the Shell has shut its Nigerian venture, which has a capacity of 115,000 barrels a day, on 11 January after four foreign oil workers were kidnapped from a boat near the field. It was also losing 106,000 barrels a day because of an explosion at a pipeline in the Brass Creek area of the Niger River delta.
Emancipation of the Niger Delta has urged oil workers to leave the region, where almost all of Nigeria's 2.4 million barrels per day of oil is produced.
Last Wednesday, the attacks caused an abrupt 10 per cent cut in the country's oil production.
Iran accounts for 2.4 million bpd of oil exports and any disruption in this in the wake of sanctions will have devastating effect. Iran can completely halt crude shipments.
Oil dealers in New York and London confirmed the prices are going up on account of the twin reasons.
The International Energy Agency has predicted in a monthly report Tuesday that global demand for oil in 2006 is expected to go up 2.2 per cent to 85.1 million barrels a day.
Posted
on : Wed, 18 Jan 2006 12:15 GMT | General News
By : Pippa Fielding
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