Oil Rises on Concern Attacks May Cut Nigeria Production Further

[shugah]

Oil Rises on Concern Attacks May Cut Nigeria Production Further

Feb. 24 (Bloomberg) -- Crude oil rose after rebels threatened for the second time in a week to attack the oil industry of Nigeria, Africa's largest producer.

~snip~

``Fears of disruption in Nigeria, lower production from Iraq and potential losses of supply from Iran mean the industry wants to hold higher inventories,'' said Julian Lee, an analyst at the Centre for Global Energy Studies, a London consulting company. ``Nigerian oil is valuable in terms of quality and location.''

~snip~

Still, less gasoline accumulated than expected, slowing the pace of growth of the previous seven weeks and raising concern supplies may be strained in summer as demand increases. Gasoline stockpiles reached their highest since 1999 the week ended Feb. 17.

``The relatively high inventory levels are providing some cushion to the market, but of course demand is rising in the U.S.,'' said Francisco Blanch, a senior oil strategist with Merrill Lynch & Co. in London. ``Sure, there is a cushion and we are in a more comfortable situation than a few months ago, but the structural problems this market has haven't gone away.''

http://www.bloomberg.com/apps/news?pid=10000087&sid=awfAqiC_S8OI&refer=top_world_news

[stop the bleeding]

1. .

:kick:

[rodeodance]

2. and i just saw a report on a refinery in Saudi Arabia.

[daleo]

4. Yes, I think that report has to alarm oil traders much more

Supposedly, a Saudi oil refinery was attacked by three attempted car bombings. That was the report on CNN this morning. If Saudi Arabia goes off the rails (quite possible, I think) oil could go over $100 easily.

[cliss]

3. It's amazing to me

how naive these people are. Look at this comment: "we are in a more comfortable situation".. comfortable?

About as comfortable as a guillotine hovering above your neck.

Nigeria is in flames. There was just a report of an attempted car bombing at a refinery in SA. Wherever there is oil, there is disuption. How in the hell can he even say the word comfortable in the same sentence as oil.

These people are supposedly "smart"? Don't believe it.

[Barrett808]

5. And the imminent disintegration of Iraq is having no effect?

That's got to account for at least half of the increase.