Crude oil prices dip despite rebel attacks

22 December 2009

Written by John King

Crude oil prices moved lower on the New York Mercantile Exchange yesterday (December 21st) despite a series of attacks on western oil infrastructure in Nigeria over the weekend.

Rebel groups operating in the oil-rich Delta region of Nigeria claimed responsibility for an attack on a pipeline owned by Royal Dutch Shell, although the company did not immediately confirm the attacks had taken place.

It is the first time rebels have attack foreign-owned infrastructure in the country since being offered an amnesty in October.

Speaking to Reuters, Tim Evans of Citi Futures Perspective in New York, said: "The Nigerian attack isn't confirmed, but this raises questions about whether we'll see stability there, or we'll go back to four pipeline attacks every month."

In 2008, repeated attacks on Nigerian oil infrastructure sparked widespread concern about supply stability, adding impetus to the rally that caused oil prices to soar to $147 a barrel and also led to sharp jumps in the cost of heating oil, petrol, diesel and other petroleum products.

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