Nigerian Unrest Threatens Output

Attacks from militant groups and industrial action in Nigeria have forced oil majors Shell and ExxonMobil to reduce or shutdown output, helping to force oil prices higher.

Militant groups in the Niger Delta have blown up a section of a Shell pipeline, the latest in a string of attacks over the past few days.

The company says it may not meet its target of shipping 169,000 barrels a day from the country over the next few weeks following the attacks.

Meanwhile, a strike over pay and conditions at an ExxonMobil plant has shut down all Nigerian oil production of about 800,000 barrels since last week, industry sources have told Reuters.

Oil hit a new record near US$120 a barrel today, boosted by the Nigerian pipeline disruptions and a strike by refinery workers in Scotland, which has led to threats of supply shortages in the UK.

US light crude for June delivery was up 69 cents at US$119.21 a barrel today while London Brent crude was up 71 cents to US$117.05.

By Ozge Ibrahim