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Oil prices rise as Shell declares force majeure on Bonny Light exports
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Brent crude, the global benchmark, rose 0.94 percent to $48.31 per barrel as at 4.55 GMT at the Atlanta-based Intercontinental Continental Exchange.
Oil prices rose on Friday after the Shell Petroleum Development Company of Nigeria (SPDC) declared force majeure on exports of Bonny Light crude oil following a leak on the Trans Niger Pipeline.
Brent crude, the global benchmark, rose 0.94 percent to $48.31 per barrel as at 4.55 GMT at the Atlanta-based Intercontinental Continental Exchange. On the New York Mercantile Exchange, the West Texas Intermediate, the US benchmark, rose 0.83 percent to $46.02 per barrel.
The announcement of the force majeure on Bonny Light comes two days after SPDC lifted its force majeure on exports via the Forcados terminal, which had been shut down since last year.
Notwithstanding the force majeure on Bonny Light exports, SPDC said exports are still expected via the Nembe Creek Trunk Line, the other export avenue for Bonny Light. Loadings were planned at 203,000 barrels per day in June, according to Reuters.
The Trans Niger Pipeline transports around 180,000 barrels of crude oil per day to the Bonny Export Terminal and is part of the gas liquids evacuation infrastructure, critical for continued domestic power generation (Afam VI power plant) and liquefied gas exports.
SPDC’s force majeure on Bonny Light exports could further hurt Nigeria’s total daily production, causing the government to miss production and revenue targets set in the 2017 budget.
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