Pipeline attacks prompt oil price rise

29 July 2008

Oil prices have risen amid claims that a Nigerian militant group has attacked pipelines.

The Movement for the Emancipation of the Niger Delta (Mend) said in an email that it had inflicted damage on two lines, both owned by Royal Dutch Shell.

"In keeping with our pledge to resume pipeline attacks within the next 30 days, detonation engineers backed by heavily armed fighters from Mend … sabotaged two major pipelines," the statement read.

Shell confirmed that at least one of its sites had suffered damage, prompting an increase in the cost of a barrel of oil as speculation rose over the effect on production.

The Associated Press reports that the price of light, sweet crude is now at $125.06 (£62.70), with the increase likely to impact upon the cost of fuel and home heating oil in the future.

Police in Scotland recently reported that high oil prices had prompted a wave of home heating oil and agricultural diesel thefts.

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