Crude prices down despite new Nigerian violence

Crude oil prices rose early on Thursday on the news that there had been more kidnappings in Nigeria, in three separate attacks on oil facilities there. Up to twenty workers were taken initially, but prices began to fall again after eight of the twenty were released without having suffered any harm. The new attacks came on top of supply disruption fears after the recent - and disputed - presidential elections there. Today’s violence was said by those claiming responsibility for them that they were a warning to Shell (LSE: RDSA, RDSB; NYSE: RDS.A, RDS.B) which is getting ready to open one of its Nigerian oil fields, which has been shut down for over a year due to the ongoing attacks in Nigeria.

Brent crude for June delivery was up to $66.98 per barrel at one point during the session but later dropped 50 cents below Wednesday’s close to $65.75 per barrel on the Intercontinental Exchange in London. June contracts for West Texas Intermediate crude fell 73 cents to $62.95 per barrel on the New York Mercantile Exchange. Meanwhile, after a new report showing that US inventories of natural gas grew by 87 billion cubic feet last week, more than had been expected, Nymex June Henry Hub dropped 50 cents to $7.68 per million British thermal units.