Rebels sabotaged two pipelines of shell in Africa
Oil prices rose on Monday after rebels said they had sabotaged two pipelines in Nigeria, a major exporter of crude, and oil analysts said that the market was also tracking developments over Iran. Brent North Sea crude for September delivery climbed 1.58 dollars to 126.10 dollars a barrel. New York's main contract, light sweet crude for September, advanced by 1.50 dollars to 124.76 dollars a barrel. Authorities said the attack was carried out by members of the Movement for the Emancipation of the Nigel Delta and affected two pipelines of Shell located at Rivers States in the southern part of the African country. Word of the sabotage came after the release on Saturday of eight foreign workers who had been kidnapped near a major oil export terminal in southern Nigeria with no ransom being paid. The oil-rich Niger Delta has seen numerous kidnappings targeting foreign energy firms, claimed by militants demanding a greater share of oil wealth for the region's inhabitants. Violence in the southern region has reduced Nigeria's total oil production by a quarter since January 2006. Nigeria was Africa's biggest oil producer until it was overtaken in April by Angola, according to Organization of Petroleum Exporting Countries (OPEC) figures. Analysts said the latest development in Nigeria and in Iran which s locked in a tense nuclear stand-off with the United States and the European Union (EU) could affect world crude prices but added that if the dollar strengthens and concerns over Iran are reduced then the price of oil could drop by as much as 70 to 80 dollars a barrel. Oil prices struck record highs above 147 dollars a barrel on July 11 as the US unit weakened and owing to tensions over Iran. They have since fallen more than 20 dollar on concerns that the global economic slowdown will weigh on energy demand, particularly in the United States -- the world's biggest consumer of oil.