Monday, 23 January , 2006, 11:30
Singapore: Oil prices were higher in Asian trade today on continued worries over security and political tensions in key producers Nigeria and Iran, dealers said. Today in Sify Finance
At 0800 IST, New York’s main contract, light sweet crude for March delivery, was up 70 cents to $ 69.18 a barrel from its close of $ 68.48 in the US Friday.
Unrest in Nigeria had already disrupted production in Africa’s biggest producer while simmering tensions between Iran and the West over Tehran’s controversial nuclear programme were also at play, dealers said.
"In the short-term, it is all about geopolitical drama," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore. "The short-term issue is Nigeria and the long-term issue is Iran," he said.
Militants have threatened to fire rockets into Nigerian oil terminals amid confusion over talks aimed at securing the release of four foreign hostages taken by separatist rebels in the Niger delta region. |Read more Finance news.|
Violence against oil companies operating in the Niger delta and the federal government has claimed more than 20 lives while oil production has been slashed by 211,000 barrels per day in Nigeria, Africa’s largest oil producer.
Iran, the second biggest crude producer in the Organisation of Petroleum Exporting Countries (OPEC), has also asked the cartel to reduce total oil production quotas by one million barrels per day (bpd) from April to prevent a seasonal easing of prices in the second quarter of the year.
Who's ready to pay 5 dollars a Gal gas? This is going to hurt maybe even send us into a depression.
