Crude oil prices reached another record today, as strikes in Scotland and Nigeria reduced output. Another factor causing prices to rise to $119.93 a barrel in New York is the continuing attacks in Nigeria on pipelines.
The Nigerian strike has now entered its fifth day, as production has decreased by 50 percent since April 25.
"As long as there are disruptions of high-quality crude supplies, prices are going to move higher," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. "If the Nigerian strike isn't settled, we could easily see oil rise to $125 by the end of the week."
The two areas represented by the strike in the North Sea and Nigeria produce the low-sulfur oils which refiners prefer.
June delivery for crude oil climbed by 23 cents to finish at $118.75 a barrel on the Nymex. Brent Crude for June increased by 40 cents to settle at $116.74 a barrel on ICE Futures Europe exchange in London.
The strike in Scotland will only last for two days, as it was a protest over their pensions. Even so, it'll take about three weeks for the refinery to return to its full capacity of 200,000 barrels a day.
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