Fears of oil shutdown as Nigerian strike continues

On January 14, 2012 by stratagem

Nigeria’s government and labour unions have failed to end a paralysing nationwide strike over high gasoline costs, potentially sparking an oil production shutdown in a nation vital to US oil supplies.

Nigeria Labour Congress president Abdulwaheed Omar told journalists outside the presidential palace: “We have not reached a compromise.” He avoided answering direct questions about whether oil production would shut down in Nigeria, Africa’s most populous nation.

The Petroleum and Natural Gas Senior Staff Association of Nigeria had threatened to stop all oil production in Nigeria at midnight. President Babatunde Ogun was not immediately available for comment.

Nigeria, which produces about 2.4m barrels of crude a day, is the fifth-largest oil exporter to the US. While the country has a several-week stock of oil ready for export, the threatened shutdown on Sunday could shake oil futures as traders remained concerned about worldwide supply.

>> Source: Guardian

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