Oil Rises Above $120 to Record on Concern Over Nigeria Attacks

(Bloomberg) — Crude oil rose above $120 a barrel to a record in New York on concern that production disruptions in Nigeria, Africa’s biggest producer, will limit supplies.

Militant attacks on an oil-transfer facility in the country forced Royal Dutch Shell Plc to reduce output, the Associated Press reported May 3, citing the company. The Nigerian Movement for the Emancipation of the Niger Delta, or MEND, claimed responsibility for the weekend assault.


The attacks “could take more oil off the market,” said James Ritterbusch, president of Ritterbusch & Associates, in Galena, Illinois. “There is not much margin for error as far as losing barrels.”

Crude oil for June delivery rose $3.60, or 3.1 percent, to $119.92 a barrel at 11:18 a.m. on the New York Mercantile Exchange. Futures touched a record $120.21 a barrel in intraday trading. The price has gained 94 percent in the past year.

Oil also climbed as the dollar weakened against the euro and a report showed that U.S. service industries unexpectedly expanded in April, signaling stronger economic growth.

Bloomberg