Oil prices rise over Nigeria’s supply crisis

 

                                             OPEC

Oil prices climbed to fresh peaks for 2016 for the third day in a row yesterday due to supply disruptions in Nigeria and data showing lower (United States) US petroleum inventories.

The Niger Delta Avengers, a rebel group that has attacked numerous oil facilities in Nigeria, rejected a truce offer with officials and claimed they hit a new target.

The disruptions have slashed output in OPEC member Nigeria from 2.2 million barrels a day to 1.6 million barrels a day.

US benchmark West Texas Intermediate for July delivery advanced 87 cents to US$51.23 a barrel on the New York Mercantile Exchange. Brent North Sea oil for August delivery gained US$1.07 to US$52.51 a barrel in London.

US inventory data on Wednesday confirmed a tightening market picture, with US commercial stocks dropping by 3.2 million barrels for the week ending Jun 3, according to the Department of Energy.