Strike, Unrest in Nigeria Propel Oil Price Surge
NEW YORK --- Crude oil rose to a record price of $119.93 a barrel in New York on Monday, April 28, prompted by reports of a North Sea pipeline shutdown and militant attacks and a strike in Nigeria, Bloomberg reported.
BP Plc closed the Forties Pipeline System after a strike at the Grangemouth refinery cut power supplies. Also, a walkout by Exxon Mobil Corp. workers entered its fifth day in Nigeria. At the same time, a militant group known as the Movement for the Emancipation of the Niger Delta said it will continue attacks on oil and gas pipelines in Nigeria.
"As long as there are disruptions of high-quality crude, supplies prices are going to move higher," Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Mass., told Bloomberg. "If the Nigerian strike isn't settled, we could easily see oil rise to $125 by the end of the week."