Oil Prices Way Up on Nigeria Violence, Refinery Explosion

The price of crude rose 4.8 percent to close at $59.03 a barrel and the price of heating oil gained 4 percent.

HEAT USA Price Report
Evening projection (for Tuesday’s average retail price per gallon): UP $0.04
A rebel attack on two oil pipelines in Nigeria on Sunday and an explosion today at a Sunoco refinery in Pennsylvania tightened supplies in the eyes of traders and drove price up sharply.  A late bounce-back by US stock markets today also contributed to higher prices.  The largest rebel group operating in the Niger Delta claimed responsibility for the two pipe explosions and threatened a blockade that would prevent oil exports unless the government stopped raids on rebel camps.  The explosion and fire at Sunoco’s 178,000-barrel-per-day Marcus
Hook, Pennsylvania, refinery will likely slow production at the refinery for at least several weeks.  The June contract for crude oil expires tomorrow.

HEAT USA price experts noted the steep price increase but were glad to see the two supply events of the day drive prices even higher.