Sam Fletcher
Senior Writer
HOUSTON, Apr. 28 -- Crude prices shot up Apr. 25 following reports of a pipeline attack in Nigeria and indications of a pending strike by refinery workers in Scotland.
The Movement for the Emancipation of the Niger Delta (MEND) said its fighters hit an oil pipeline Apr. 24 in Nigeria—the fourth such attack within a week. Royal Dutch Shell PLC confirmed an attack on a joint venture pipeline but provided no additional details. Shell officials said an earlier attack cut its Nigerian oil production by 170,000 b/d. Other reports said workers at a Nigerian joint venture involving ExxonMobil Corp. cut production by an unspecified amount in a pay dispute.
Separately, BP PLC said Apr. 25 it would close a 700,000 b/d North Sea oil pipeline because of a pending strike at Ineos Group Holdings PLC's 195,700 b/d Grangemouth, Scotland, refinery because that plant provides electricity and steam to the North Sea's Forties Pipeline System. That, in turn, will force the shut in of more than 50 North Sea oil fields with which that pipeline is connected. Production of as much as 3 bcfd of associated natural gas also will be shut in, officials said. Grangemouth refinery workers on Apr. 27 began a 2-day walkout at that refinery in a dispute over pensions.
Energy prices
The new front-month June contract for benchmark US light, sweet crudes jumped $2.46 to $118.52/bbl Apr. 25 on the New York Mercantile Exchange. The July contract gained $2.31 to $117.53/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., escalated by $4.41 to $121.51/bbl. Heating oil for May delivery advanced by 4.45¢ to $3.30/gal on NYMEX. The May contract for reformulated blend stock for oxygenate blending (RBOB) is up 3.51¢ to $3.05/gal.
The May natural gas contract gained 17.3¢ to $10.96/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., increased 8¢ to $10.74/MMbtu.
In London, the June IPE contract for North Sea Brent was up $2 to $116.34/bbl. The May contract for gas oil gained $9.50 to $1,085.75/tonne.
The average price for the Organization of Petroleum Exporting Countries' basket of 13 benchmark crudes dropped 62¢ to $110.01/bbl on Apr. 25. So far this year, OPEC's basket price has averaged $95.27/bbl.
Contact Sam Fletcher at [email protected].
