Crude Oil Rises After Shell Warns Its Exports From Nigeria Will be Delayed
London, Nov. 1 (Bloomberg) -- Crude oil rose after Royal
Dutch/Shell Group warned customers that oil exports from Nigeria
will be delayed this month by civil unrest.
Shell, the biggest foreign oil producer in Nigeria, said it
could not meet contractual obligations to deliver crude from its
Bonny terminal, which supplies 100,000 barrels a day, because of
circumstances beyond its control. Two weeks ago Shell said it
extended until Nov. 12 a force majeure on oil exports from its
Forcados terminal, also in Nigeria.
``There seems to be quite a bit of trouble going on down
there in Nigeria and that's what's kicked the market up,' said
Richard Bend, a broker with Cannon Bridge Corp. Ltd.
Crude oil for December delivery rose as much as 27 cents,
or 1.2 percent, to $21.96 a barrel on the International
Petroleum Exchange. Crude for December delivery on the New York
Mercantile Exchange was 28 cents higher at $22.03 a barrel in
electronic trading.
Concern about disruption to supplies from Nigeria come as
oil prices have doubled this year as 10 of the 11 members of the
Organization of Petroleum Exporting Countries, plus four other
nations, cut output by 5 million barrels a day, or about 7
percent of world supply.
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