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Oil rises above $133 on Nigeria, North Sea

Reuters
Monday, May 26, 2008

Oil rose above $133 on Monday due to lingering supply concerns from key oil producer Nigeria and a partial shut-in at the North Sea oilfields.

London Brent crude rose $1.46 to $133.03 a barrel by 6:36 a.m. EDT (1036 GMT), marking a larger gain than U.S. crude.

U.S. crude rose $1.10 cents to $133.29. Last week, it struck a record high of $135.09.

Nigeria's army confirmed on Monday there had been an explosion at an oil facility owned by Royal Dutch Shell (RDSa.L: Quote, Profile, Research), hours after Niger Delta rebels claimed to have blown up a pipeline.

Impact on output from the most recent blast was not immediately clear.

"Nigeria continues to experience supply problems," Robert Laughlin with MF Global said in a research note.

Oil output in Nigeria, an OPEC member and Africa's top producer, has been erratic in recent months due to repeated rebel attacks to oil facilities and a workers' strike in April.

In Europe, Norwegian oil and gas producer StatoilHydro (STL.OL: Quote, Profile, Research) said Statfjord A in the North Sea, which produces 19,000 barrels of oil per day, remains shut after an oil leak on Saturday.

Full article here.

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