Nigeria Threat Make Oil Shoot Up to $134
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Oil prices steadied above $134 a barrel on Wednesday after a Nigerian union said it would consider strike action in a dispute with the management of the local unit of Chevron.
Nigeria’s senior oil workers union said it would consider going on strike if talks with Chevron
in a dispute over the transfer of the company’s expatriate managing director fail by the end of Wednesday.
Oil traders said the market was waiting to see the impact of news that Saudi Arabia was poised to pump oil at its fastest rate in decades next month.
“People are wondering whether the extra Saudi oil will pop the price bubble,” said Christopher Bellew of Bache Financial in a CNBC interview.
Analysts are expecting a rise of 800,000 barrels for gasoline and 1.8 million barrels for distillates.
Oil prices are up nearly sevenfold since 2002 on strong demand from emerging economies such as China.
While Saudi moves to dampen markets by pumping more oil, U.S. and British regulators unveiled a plan to slap position limits on U.S. crude contracts on the London-based ICE exchange to rein in speculators.
The combined effort among Saudi Arabia, the United States and Britain could rattle some investors and bring down prices, analysts said.
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