Oil Price Slip On Profit-Taking, Nigeria Ceasefire

LONDON: Oil prices fell Monday on profit taking and as a ceasefire took hold in Nigeria, whose oil production has been plagued by militant attacks in recent years, analysts said.

The New York’s main contract, light sweet crude for December delivery, shed 49 cents to $ 80.01 a barrel.

London Brent North Sea for December lost 40 cents to $ 78.52 in early London trade.

New York, crude oil punished $ 82 on Wednesday, the highest since Oct. 14, 2008, when the market was inspired by a U.S. currency slowing.

Nigerian armed group, in the chief oil-rich Niger Delta on Sunday declared an “indefinite ceasefire” to promote dialogue with the government, but the authorities in Abuja, rejected the team’s fighters mediation.

The Movement for the Emancipation of the Niger Delta (MEND) said it reached its decision after the government “expressed its readiness to engage in serious and constructive dialogue with each group or individual to achieve lasting peace in the Niger Delta .

MEND attacks on oil industry in Nigeria have helped to play havoc with oil prices on the world market and cut production at the nation’s third since 2006. Nigeria is the eighth largest producer of oil.

Analysts at consultancy JBC Energy in Vienna, said the cease-fire in Nigeria “positive news” to ease supply concerns.

“Last week the Nigerian government announced its readiness to give 10 percent of the country’s oil wealth to the inhabitants of the Niger Delta appears to be paying off, with the militant group in Nigeria, MEND announced major .. . is to restore to an earlier ceasefire for talks with the government, “analysts at JBC said.

“However, the security situation in Iraq looks increasingly uncertain after two bombings at the weekend.

“This calls into question how far the country is able to increase its oil production in coming years.”

Iraqi security forces were on high alert on Monday, a day after a double car bomb attack blamed on al Qaeda killed 99 people and attacked government offices in Baghdad

Tags: Nigeria Ceasefire, oil price, Profit Taking, Slip On