Oil prices slashed below $62 a barrel, despite a rally fired by rebels on Nigeria’s oil industry that halts up to 150,000 barrels per day of exports.
Rebels blew up several pipelines on an oil export terminal in Niger Delta, which hinder the supplies to the Brass facility operated by Italian oil group Eni. Work has resumed at Brass until further notice. This attack was the most damaging on oil facilities, which closed down 30 per cent of Nigeria’s total output. Country has lost billions of dollars in lost oil revenue over the past year.
Turmoil at Nigeria pumping and exporting area worries other nation like U.S, as weather forecasters strongly believe that there is an above-average chance that a hurricane will hit the Gulf Coast this year, as in 2005 when storms knocked out a swathe of the country’s oil platforms and coastal refineries.
U.S. government forecast that global demand for oil would increase to 84.6 million bpd, up 400,000 bpd from its previous forecast that mounts the U.S. demand at 20.7 million bpd, from last month’s 20.68 million bpd forecast.
Although U.S. crude fell 28 cents at $61.98, but it firmly believe that demand will surge on harsh Atlantic hurricane season. Crude stocks expected to rise to 400,000 barrels.
Image: imageshack
Via: financial times
