Daily Independent (Lagos)

Niger: Unrest in Niger Delta Pushes Oil Price Above $73

Adeola Yusuf

1 July 2009


Lagos — The unrest in the Nigeria's oil-affluent Niger Delta region on Tuesday forced the world to pay higher for a barrel of oil as the commodity price skyrocketed above $73 per barrels before the end of the day's transaction.

The last time oil sold at this price in the global market was October, 2008. Nigeria, Africa's largest oil producer, featured prominently as the cause for the eight-month high price surge, which analysts said the country's economy did not benefit from.

The country's militants on Monday partly damaged and shut down a Royal Dutch Shell offshore oil platform, an action which swiftly shot oil price above $73 per barrel

The Schork Report edited by United States (U.S.) trader and analyst Stephen Schork downplayed the events in Nigeria and their effect on the market, pointing out that Nigeria's share of the U.S. import market had dropped from 11 percent to 6 percent in the past year.

"For all intents and purposes," he said, "the ... turmoil in Nigeria hurts that country more so than the United States."

By midday in Europe, benchmark crude for August delivery was up 23 cents to $71.72 a barrel in electronic trading on the New York Mercantile Exchange after trading as high as $73.38 earlier in the session. On Monday, it gained $2.33 to settle at $71.49.

A weakening United States (U.S.) dollar, unit of exchange for oil transaction was also blamed for the surge.

Schork added that the gains by crude might have been linked to "the desire of fund managers to get some energy exposure into their portfolios ahead of the close of business (Tuesday)."

Other analysts also said prices were boosted by speculative trades and portfolio positioning by investment funds, which typically intensify at the end of a fiscal quarter.

"There is still a lot of oil out there ... and demand for it is still very questionable," Schork said.

U.S. energy consultancy Cameron Hanover mirrored Schork's view on the lack of influence of supply and demand on the market, saying that fundamentals had been "relegated to cocktail conversation in the actual movement of oil prices."

Oil has surged from below $35 in March in part on investor concern that massive U.S. fiscal stimulus spending will eventually spark high inflation. Investors often buy commodities such as crude as a hedge against a weakening dollar and inflation.

The euro gained to $1.4140 on Tuesday from $1.4078 on Monday.

Crude trading volume was about three times more than normal Tuesday in Asia, said Clarence Chu, a trader at market maker Hudson Capital Energy in Singapore.

China boosted state-set gasoline and diesel prices Tuesday to reflect rising global crude costs, days after indicating plans to increase its strategic crude oil reserves by 60 percent over the next five years.

In other Nymex trading, gasoline for July delivery rose 2.92 cents to $1.9650 a gallon and heating oil gained 1.25 cents to $1.7960. Natural gas for July delivery advanced 3.0 cents to $3.974 per 1,000 cubic feet.

In London, Brent prices weer up 15 cents to $71.14 a barrel on the ICE Futures exchange. Earlier in the session, Brent peaked at $73.50.

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Niger's Tandja Tries to Extend Rule

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Author: kaparah
Thu Jul 2 18:11:55 2009

Threat or no threat of economic sanctions, let the good people of Niger decide what is best for them. For my brethren up there in Niamey, all you need do is to look south of the border to see what the western-style “democracy” has done for the copy-copy “yessir-yesman” Nigerians. If you think that Mr. Tandja has the wherewithal to deliver quality leadership until he can adequately educate the public & politicians, alike about the principles of democracy, rights of the led and the responsibilities of the leaders by putting the public first, and about the electorates picking the right leader from a multitude of candidates with credible agenda and ideas plus the capacity to deliver & continue building the nation, precepts by precepts, from where the incumbent has stopped, then, by all means keep Mr. Tandja. Your future is in your hands not in some foreign tin-gods that do not have the best interest of your common folks at heart but prefer their own lackey that would sell your assets for peanuts while their choice of your leader wouldn't mind turning the guns on the locals that stand in its way so as to keep the spigot open for the West’s consumption. Good luck!

Author: Prince Charles
Thu Jul 2 22:49:38 2009

Who made Mamadou Tanjda lord over Niger? Are you telling me that this man is the only person in that country that has brains and therefore ordained to lead his people to the promised land? What has he achieved in 10 years that should make him think that he alone has the answer to what the people of Niger need?

Your analysis runs hollow and can only come from somebody who does not believe in the rule of law.

The Western democracy is not perfect, neither is it without its shortcomings, but it is the best model of how people are governed. With practice comes perfection, and all those countries who have been practicing it for years are gradually perfecting the art of governance, and not creating tin-gods as we see in almost every country in Africa, with the exception of a few.

You cannot also take European donors to task for voicing their displeaure at the precedence that this man wants to set in Niger's body politics, and they have every right to threaten to withhold aid to that poor country if he does not play ball. Afterall, he who pays the piper, calls the tune.

We must look deep within ourselves and ask ourselves if we are not capable of doing anything right, especially with the art of governance.

Mamadou Tandja is on the wrong path and all right thinking persons both far and near must condemn him in no uncertain terms for his power play.

Author: kaparah
Fri Jul 3 15:23:33 2009

That is the same logic used by the woefully corrupt Nigerian politicians to truncate the previous effective administration "...who made Obasanjo Lord over us?" "...is he the only one that can deliver quality leadership?" Well, Nigerians now know better that they should have kept what worked instead of this major disappointment. Too late to go back now as more years are been wasted on mediocrity. I won't be surprised if "Prince Charles" of Africa is a politician that has been smarting to lay his sticky-palms on a juicy political job so he too can chop a little at the expense of the masses.

Author: kaparah
Thu Jul 2 17:51:19 2009

“Ignominy” in the eyes of whom? The west? Is that reason the people of Niger should not choose whether or not their leader stays or go. I guess whatever the West says to This Day columnist must be right, the same way they “gbaju e” by bluffing the gullible Nigerians to jettison the greatest leader we ever had in favor of this currently clueless, lazy-bone called “Servant Leader” that has now taken Nigeria back to the stone age (on the excuse that Nigeria will break up by 2015 if power do not go back to the same North that bankrupted Nigeria for 40 ruinous years). Threat or no threat of economic sanctions, let the good people of Niger decide what is best for them. For my brethren up there in Niamey, all you need do is to look south of the border to see what the western-style “democracy” has done for the copy-copy “yessir-yesman” Nigerians. If you think that Mr. Tandja has the wherewithal to deliver quality leadership until he can adequately educate the public and politicians, alike about the principles of democracy, rights of the led and the responsibilities of the leaders by putting the public first, and about the electorates picking the right leader from a multitude of candidates with credible agenda and ideas plus the capacity to deliver & continue building the nation, precepts by precepts from where incumbent has stopped, then, by all means keep Mr. Tandja. Your future is in your hands not in some foreign tin-gods that do not have the best interest of your common folks at heart but prefer their own lackey that would sell your assets for peanuts while their choice of your leader wouldn't mind to turn the guns on the locals that stand in its way so as to keep the spigot open for the West’s consumption. Good luck!

Author: Yah Ashantewa
Thu Jul 2 21:04:03 2009

African leaders have a cancerous obsession with power. When they manage to get in our they think they own the country, own the people, own the Central Bank, own all the currencies, own all the foreign exchange, own all the natural resources and can spend any amount of money on what they want, where they want and also employ all their families to hold key cabinet positions or create a new one for the wife. They dont think beyond how they came to power but like all the other morons cling to power and just would not go until forcefully removed by their own. The AU is like a puppet because those that lead the AU have done the same thing anyway. That is why they are toothless dogs and spineless worms...what a disgrace for us to revisit this again...

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