Oil hits record on Nigeria fears
Date: Monday, September 27 @ 09:18:53 PDT
Topic: Consumption; Demand; Prices
LONDON (Reuters) - Oil prices have surged to new record highs near $50 for U.S. crude as Nigeria emerges as the latest focus for worries about supply security on world energy markets.
U.S. light crude gained 86 cents to $49.74 a barrel on Monday, the highest in 21 years of trade on the New York Mercantile Exchange contract. London Brent, the benchmark for European crude imports, rose 92 cents to a record $46.25 a barrel.
Reuters
Separately, Nigeria already has been forced to cut back output from surge capacity to prevent long-term damage to its ageing facilities -- the first sign that efforts by OPEC countries to quell prices by squeezing out extra output may not be sustainable.
Presidential Adviser on Petroleum Edmund Daukoru told Reuters that production was reduced 10 percent to base capacity of 2.25 million bpd in August. Nigeria had been pumping at surge capacity of up to 2.55 million bpd.
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