Nigerian Strike Could Boost Oil Prices

Crude oil prices may rise today as a general strike in Nigeria enters its second week, raising concern about disrupted exports from the U.S.’ sixth-largest supplier.

Nigeria’s top labor leader rejected a government offer to scale back an increase in fuel prices that prompted the strike, Agence France-Presse reported.

Nigeria’s sweet, or low-sulfur, oil grades are popular in the U.S. at this time of year for processing into gasoline.

“You can expect it to hit $31 a barrel maybe sometime today,” said David Thurtell, commodities strategist at Commonwealth Bank of Australia. “The worst part is that Nigeria’s Bonny Light is one of the favored crudes in the U.S. for cracking into gasoline for the summer driving season.”

Crude oil for August delivery on Thursday rose 27 cents, or 0.9%, to $30.42 a barrel on the New York Mercantile Exchange. The exchange was closed Friday for the Fourth of July.

The start of electronic trading today was delayed due to technical problems.

The strike began last Monday.

Crude oil futures fell in London on Friday amid investor expectations that the strike would end, removing a threat to oil exports from Nigeria.