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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (14423)	10/31/2004 8:56:09 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

Crude Oil Futures Rise After Nigerian Unions Target Oil Exports Nov. 1 (Bloomberg) -- Crude oil futures rose in New York after unions in Nigeria, the fifth-biggest supplier to the U.S., said they will disrupt the country's oil exports in an indefinite nationwide strike later this month. The Nigeria Labour Congress yesterday called the general strike beginning Nov. 16 to protest rising fuel prices. Royal Dutch/Shell Group, which produces almost half the country's oil, is likely to be singled out for additional action after the congress and the country's senior oil workers' union called the company an ``enemy of the Nigerian people'', Agence France-Presse reported. ``The market's not going to wait till Nov. 16 to see what happens,'' said Randy Simpson, vice-president of supply and trading at New West Petroleum Inc. in Sacramento, California. ``The market is susceptible to a spike up again.''. Crude oil for December delivery rose as much as 22 cents, or 0.4 percent, to $52 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $51.81 at 11:11 a.m. Sydney time. December crude gained 86 cents, or 1.7 percent, to $51.76 on Oct. 29, the first rise in three days, because of concern about a possible general strike in Nigeria. Crude oil prices fell 6.1 percent last week after U.S. oil stockpiles rose more than expected and China raised interest rates to slow expansion of its economy. ``After the beating crude took last week everyone is looking for factors that may turn crude around,'' New West's Simpson said before trading began. Prices rose during a four-day strike in Nigeria last month. Unions allowed skeleton crews to work at oil facilities to maintain output. `All Workers' ``All the oil workers will be involved in the strike,'' AFP said, citing congress president Adams Oshiomhole. ``Last time there was no disruption of the upstream oil sector. Now the only way for the government to listen is to interrupt the oil flow.'' Nigeria, produced 2.42 million barrels of oil a day in September. The loss of the country's low-sulfur, or sweet, crude oil exports to the U.S. would compound sweet crude oil output lost from the Gulf of Mexico since Hurricane Ivan struck the region seven weeks ago. New York oil futures have gained 18 percent in that time and reached a record $55.67 a barrel Oct. 25 before plunging when China's central bank Oct. 28 jolted world markets by raising interest rates for the first time in nine years to stem inflation. Oil prices were expected to fall this week, according to 62 percent of the traders and analysts surveyed by Bloomberg News on Oct. 28. Thirty-two of the 52 traders and analysts surveyed said oil futures would decline, the biggest margin forecasting a slide since the survey began in April. Seventeen expected prices to rise and three said oil would be little changed. A week earlier, 65 percent said prices would rise. To contact the reporter on this story: Gavin Evans in Wellington, New Zealand at gavinevans@bloomberg.net quote.bloomberg.com