Brent crude up on Nigerian troubles

Attacks against oil production and distribution installations in Nigeria sent crude oil prices up in London on Monday. The attacks, which included the kidnapping of nine oil workers led to a cut in Nigerian oil exports of 25 percent. Nigeria, a member of the Organization of Oil Producing Countries, is the world’s eighth largest producer of crude oil, pumping around 2.4 million barrels of light, sweet crude per day.

Even though the market is well-supplied by oil at the moment, the problems in Nigeria could mean that OPEC will be less likely to cut production when it meets next month. This is true especially in light of the fact that the Nigerian militants claiming responsibility for the weekend attacks have threatened to continue the violence against facilities and to extend their attacks to oil tankers.

In early trade in London, Brent crude on the International Petroleum Exchange was up $1.50 to $61.39 per barrel, while IPE gasoil gained $6.25 to $533.50 per tonne. The New York Mercantile Exchange, meanwhile, was closed Monday for the Presidents Day holiday.