Oil near $133 on Nigeria, North Sea (Reuters)

Monday, May 26th, 2008 | Finance News

LONDON (Reuters) - Oil rose above $133 on Monday as
long-term supply concerns lingered and fresh production
problems appeared in Nigeria and Norway.

U.S. crude rose 95 cents to $133.14 a barrel by 11:28 a.m.
EDT (1528 GMT).

London Brent crude rose $1.47 to $133.04.

Oil prices have risen nearly 40 percent this year, topping
$135 for the first time last week.

Rebels from Nigeria's oil-producing Niger Delta said they
had blown up a Royal Dutch Shell pipeline, forcing the Anglo-
Dutch major (RDSa.L) to shut some production.

The attack was the latest act of sabotage in a campaign by
militants that has cut oil output in the world's eighth-largest
producer by around a fifth since 2006.

Nigerian Minister of State for Oil Odein Ajumogobia said in
a Nigerian television interview the most recent attacks have
lead to shut-ins amounting 175,000 barrels per day but he
expected the outage to be restored in the coming weeks.

Oil output in OPEC producer Nigeria has been erratic in
recent months due to repeated rebel attacks to oil facilities
and a workers' strike in April.

Ajumogobia also said 470,000 bpd had been shut in even
before these latest attacks.

In Europe, Norwegian oil and gas producer StatoilHydro
(STL.OL) said its Statfjord A field, which produces 19,000
barrels of oil per day, remained shut after an oil leak on
Saturday.

Nigeria's Ajumogobia said fear of a future supply shortfall
was driving the market.

"I do not think we can say there is a shortage of supply
today but I think people perceive a shortage of supply tomorrow
and that is what is driving the oil price," he said.

OPEC, the source of more than a third of the world's crude,
has not taken united action to raise output, but Saudi Arabia
individually has said it will pump more oil.

OPEC President Chakib Khelil reiterated the group would not
meet to discuss the oil market until its next scheduled
gathering in September, the website of the Libyan National Oil
Corporation (NOC) reported on Monday.

(Editing by Peter Blackburn)

(Additional reporting by Fayen Wong in Perth)

Source