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Oil Prices Up on Nigeria Strike Concerns, Iran Tension

By on January 12, 2012

Crude Oil prices shot up yesterday due to a statement issued by the head of PENGASSAN, Mr. Babatunde Ogun. Also concerns on Iran-West tensions are on the increase after an Iranian nuclear scientist was assassinated in a car bomb by an assassin on a motorcycle.

Brent Oil Futures dated February rose 48 cents to $ 112.72 a barrel on concerns that the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have already begun the process of oil production shutdown.

The statement from PENGASSAN chief reads, “Now that the Federal Government has decided to be callous minded, we hereby direct all production platforms to be on red alert in preparation for total production shutdown.

The statement also calls for provision and rehabilitation of infrastructure before the subsidy is removed by the Federal Government.

Also refiners in Europe have commenced stoppages on purchase of Iranian crude oil ahead of an expected European embargo on the commodity.