Oil prices rose today as Shell said militant attacks and a pipeline leak in Nigeria may prevent it from meeting its production obligations for July and August. Traders also kept an eye on Middle East developments.
Shell Petroleum Development Co., a subsidiary of Royal Dutch Shell PLC, said a leak on the pipeline carrying 180,000 barrels per day had been a major factor in the declaration of force majeure — which excuses a party from performing its obligations under a contract.
Light, sweet crude for September delivery rose 65 cents to $74.59 a barrel in electronic trading on the New York Mercantile Exchange. September Brent on London's ICE Futures exchange gained 40 cents to $74.40 a barrel.
In other Nymex trading, gasoline futures rose less than half a cent to S$2.3000 a gallon and natural gas futures were up 21 cents to $7.100 per 1,000 cubic feet. Heating oil futures rose more than 2 cents to $1.9845 a gallon.
Nigeria's volatile Niger Delta region has been the scene of frequent disputes between oil companies and communities who have for years demanded a greater share of the wealth of Africa's largest crude producer.
Italian oil and gas company Eni SpA said earlier this week that attackers raided an oil flow station in the southern delta, causing a significant drop in the amount of oil treated by the plant.
Traders have also been watching this week to see whether the violence in Israel and Lebanon would affect other countries in the oil-rich Middle East. The conflict has killed hundreds in Lebanon and dozens in Israel.
Israeli jets pounded Lebanon today, extending their air campaign a day after Israel suffered its highest one-day casualty toll in fighting with Hezbollah, with nine soldiers killed. Al-Qaida also threatened new attacks in response to Israel's assault on Lebanon, its first comment on the fighting now in its third week.
Oil prices hit a record $78.40 high on July 14, two days after fighting broke out between Israel and Hezbollah militants in Lebanon, on fears that the violence would escalate into a regional war and disrupt supplies, particularly from Iran, the Organization of Petroleum Exporting Countries' No. 2 supplier and a backer of Hezbollah.
Adding to this are latest figures on robust U.S. oil market fundamentals.
In its weekly petroleum report Wednesday, the U.S. Energy Department said summer gasoline demand in the U.S. was almost 2 percent higher than last year despite $3-a-gallon pump prices — high by American standards.
Gasoline inventories fell last week by 3.2 million barrels to 211 million barrels, just 500,000 barrels more than last year. Over the past four weeks, average U.S. gasoline demand was 9.6 million barrels a day, or 1.8 percent higher than last year.
The agency said crude oil inventories were flat last week at 335.5 million barrels, or 12.4 million barrels above last year.
Shell Petroleum Development Co., a subsidiary of Royal Dutch Shell PLC, said a leak on the pipeline carrying 180,000 barrels per day had been a major factor in the declaration of force majeure — which excuses a party from performing its obligations under a contract.
Light, sweet crude for September delivery rose 65 cents to $74.59 a barrel in electronic trading on the New York Mercantile Exchange. September Brent on London's ICE Futures exchange gained 40 cents to $74.40 a barrel.
In other Nymex trading, gasoline futures rose less than half a cent to S$2.3000 a gallon and natural gas futures were up 21 cents to $7.100 per 1,000 cubic feet. Heating oil futures rose more than 2 cents to $1.9845 a gallon.
Nigeria's volatile Niger Delta region has been the scene of frequent disputes between oil companies and communities who have for years demanded a greater share of the wealth of Africa's largest crude producer.
Italian oil and gas company Eni SpA said earlier this week that attackers raided an oil flow station in the southern delta, causing a significant drop in the amount of oil treated by the plant.
Traders have also been watching this week to see whether the violence in Israel and Lebanon would affect other countries in the oil-rich Middle East. The conflict has killed hundreds in Lebanon and dozens in Israel.
Israeli jets pounded Lebanon today, extending their air campaign a day after Israel suffered its highest one-day casualty toll in fighting with Hezbollah, with nine soldiers killed. Al-Qaida also threatened new attacks in response to Israel's assault on Lebanon, its first comment on the fighting now in its third week.
Oil prices hit a record $78.40 high on July 14, two days after fighting broke out between Israel and Hezbollah militants in Lebanon, on fears that the violence would escalate into a regional war and disrupt supplies, particularly from Iran, the Organization of Petroleum Exporting Countries' No. 2 supplier and a backer of Hezbollah.
Adding to this are latest figures on robust U.S. oil market fundamentals.
In its weekly petroleum report Wednesday, the U.S. Energy Department said summer gasoline demand in the U.S. was almost 2 percent higher than last year despite $3-a-gallon pump prices — high by American standards.
Gasoline inventories fell last week by 3.2 million barrels to 211 million barrels, just 500,000 barrels more than last year. Over the past four weeks, average U.S. gasoline demand was 9.6 million barrels a day, or 1.8 percent higher than last year.
The agency said crude oil inventories were flat last week at 335.5 million barrels, or 12.4 million barrels above last year.
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