Later yesterday, New York’s main oil futures contract, light sweet crude for delivery in May, pulled back to $ 116.53, down 16 cents from Friday’s close. London’s Brent North Sea crude for June hit a record $ 114.86 but then slipped back to $ 113.83, down nine cents.
Sucden analyst Nimit Khamar said the market was “supported by geopolitical concerns surrounding Nigeria and comments from OPEC, who over the weekend once again reiterated their reluctance to increase production.” Yesterday’s record-breaking run beat the previous highs set on Friday as news emerged of another pipeline attack in Africa’s biggest producer Nigeria.
The most prominent militant group in Nigeria’s southern oil-producing region said it had sabotaged two pipelines, possibly belonging to Anglo-Dutch oil giant Shell and US peer Chevron. Shell, Nigeria’s largest oil operator accounting for around half of the country’s 2.1 million barrels per day output, has seen a wave of attacks on its facilities in recent months.
Also over the weekend, OPEC president and Algerian Oil Minister Chakib Khelil said that there was no need for an immediate hike in production.
