offshore

Oil prices rose today over supply disruption in Nigeria and Libya, which supported crude prices.

Brent crude was up by 19 cents to $107.18 a barrel, while US oil rose by 22 cents to settle at $99.41 a barrel, reported Reuters.

Crude prices increased after Royal Dutch Shell‘s Nigerian unit says it declared force majeure on the crude exports of the Forcados oil blend from Nigeria after it shut an export pipeline due to a leak caused by oil thieves, which impacted on Brent futures.

"Oil prices also drew support as Libyan output fell by approximately 80,000bpd to around 150,000bpd after a large oilfield was shut."

The force majeure took effect due to ongoing repairs on the pipeline at the Forcados terminal in the western Nigeria Delta, and Shell has not confirmed when repairs will be completed but said it will reopen the export line as soon as possible.

Oil prices also drew support as Libyan output fell by approximately 80,000bpd to around 150,000bpd after a large oilfield was shut.

Crude increases were limited by the American Petroleum Institute data, which showed a higher-than-expected build in crude inventories where oil stocks surged by 6.3 million barrels to reach 379 million barrels, in the week ending 21 March.

Investors are waiting for the Energy Information Administration (EIA) data, which is scheduled for release later today, to gauge crude inventories.


Image: Shell Nigeria has declared force majeure on Forcados oil exports. Photo: courtesy of Salvatore Vuono.

Energy