New Nigeria closure sends crude prices higher

Crude oil prices were higher on Tuesday after Nigerians occupied a Royal Dutch Shell (LSE: RDSA, RDSB; NYSE: RDS.A, RDS.B) pipeline hub, cutting 170,000 barrels per day of production. Around one-fifth of Nigeria’s oil output is now shut down due to continuing unrest there. In addition, the Organization of Petroleum Exporting Countries issued a report that contradicted earlier projections from the International Energy Agency on summer supply. OPEC says that crude oil stockpiles are entirely adequate to take care of summer demand for oil products, and that OPEC therefore does not need to increase output.

June contracts for Brent crude on the Intercontinental Exchange added $1 to $67.85 per barrel late in the day in London. With June contracts expiring at the end of the session on Wednesday, July contracts gained 69 cents to $$67.97 per barrel. Meanwhile, in early afternoon trade on the New York Mercantile Exchange, West Texas Intermediate crude for June delivery was 61 cents higher to $63.07 per barrel. Also at early afternoon in New York, Nymex June gasoline and July heating oil were each 2 cents higher, to $2.32 per gallon and $1.90 per gallon respectively. Natural gas traded 8 cents lower to $8.03 per million British thermal units.