Nigeria threats send crude prices higher

Crude oil prices were up again on Wednesday after a day of declines on Tuesday.

While prices were down nearly $3 in early trade, they gained on new threats in Nigeria, where a rebel group said it would carry out new attacks on oil facilities in the region beginning on Thursday to mark the first anniversary of the current president’s inauguration.

Just before the close of floor trade on the New York Mercantile Exchange, July contracts for West Texas Intermediate crude oil added $2.13 to $130.98 per barrel while at last report Brent crude had gained $1.58 to $129.89 per barrel on the ICE Futures Europe exchange in London.

Nymex June gasoline was up 6 cents to $3.45 per gallon and July heating oil was 2 cents higher to $3.84 per gallon while July natural gas jumped 8 cents to $12 per million British thermal units.

Demand concerns continue after Energy Department numbers were revised to show that US gasoline demand dropped 1.1 percent in March from the same time last year; earlier data implied that demand was flat for the period.

In addition, a survey by CreditCards.com reported that over half of the respondents to the poll said they are driving less since gasoline prices have risen.

At-the-pump prices for regular unleaded gasoline in the United States were up 0.7 cent overnight to $3.944 per gallon while diesel fuel added 1 cent to $4.778 per gallon, both new records.

The US Energy Information Administration’s weekly report on US inventories, usually released on Wednesday, is scheduled for Thursday this week due to Monday’s observance of Memorial Day.