Oil Edges Below $99 but Supply Risks in Focus
Oil traded slightly lower below $99 a barrel on Thursday, pressured by ample supply and concern over the weakening of demand growth in major consumer nations, as well as a rise in the U.S. dollar. Threats to supply as Libya's output fell and talk of OPEC production cuts limited the decline for global benchmark Brent, which hit a 26-month low on Monday after data showing a slowdown in China's factory output raised demand concerns. "At present, it is mainly news of (possible) lower OPEC production that is lending prices buoyancy," said Eugen Weinberg, analyst at Commerzbank in Frankfurt. Brent was down 19 cents at $98.78 by 1341 GMT. Prices have declined around 15 percent from a nine-month peak of $115.71 reached in June. U.S. crude fell 10 cents to $94.32 a barrel.
Shell: Nigeria Oil Union Strike Not Affecting Exports
A strike by Nigeria's oil unions is not having any immediate impact on crude oil exports from Africa's top exporter, despite moving into a third day, spokesmen for leading operator Shell and Nigeria LNG said. Nigerian oil unions say the strike could affect exports if no agreement is reached with the government. The spokesman for NLNG, the gas exporter which is run jointly by Shell and the government, said he did not foresee any impact from the strike, which began on Tuesday. The dispute is over pensions and a lack of crude supplied to refineries. Also indicating that the strike has yet to have any impact, the Qua Iboe <BFO-QUA> grade of crude oil for November export came to market on Thursday, on schedule.
Nigerian Oil Loadings Normal
Oil tankers loaded crude normally from Nigerian export terminals on Wednesday morning, the first day of a three-day strike by oil unions to protest about violence against oil workers, Rueters reported. Thousands of union members stayed away from their workplaces in Africa's top oil producer and queues formed at filling stations as Nigerians prepared for fuel shortages. Nigeria is the world's eighth largest exporter of oil, shipping 2.4 million barrels a day to refineries in Europe, America and Asia. Unions are trying to put pressure on the government to crack down on a growing wave of attacks against oil workers by militants and criminals in the Niger Delta, a vast wetlands that is home to Africa's largest oil industry. (Source: Reuters)
