Oil prices could rise again on threat of Nigerian violence

By MoneyhighStreet Staff. Published on July 10, 2008 This post currently has no comments.

Niger Delta seen from space
News that Nigerian militants will end their ceasefire and could again begin raids on the country''s southern states could push oil prices up after a week that has seen prices stabilise somewhat.

Over the past week, prices for oil have fallen back from the highs of around $147 dollars a barrel last week. In fact, oil was trading close to $137 a barrel when the US markets closed last night.

The falls had been prompted by news that the ongoing global economic slowdown was dampening demand for oil.

Now, however, news that Nigerian militants could again begin attacks on oil production facilities in the south of the African nation could create fears about future supplies and so send prices up again.

The Deutsche Presse Agentur (DPA) news agency reported that the Movement for the Emancipation of the Niger Delta (MEND) had released a statement saying it would begin attacks on oil facilities again, following comments made at the G8 meeting.

UK prime minister Gordon Brown had pledged to support the Nigerian government in protecting its oil, while the African nation''s president had blamed the violence on an international cartel of smugglers making billions of dollars from stolen blood oil.

According to the DPA, a Mend spokesperson responded: "The international community and independent researchers are well aware that the unrest in the region is a result of over five decades of oil exploration that has developed other parts of Nigeria to the detriment of the environment and people of the Niger Delta."