As our economy continues to be based more and more more on a global level, its important to realize what happens in Nigeria may not stay in Nigeria.
A recent strike in Nigeria as caused Exxon to completely shut-down production there, hurting the balance between supply and demand world-wide. But now it looks like the striking workers requests may have been solved and oil production can continue.
Also, recent attacks on oil refineries have also led to a reduction in overall oil production.
From the BBC:
Oil prices have fallen on expectations that oil giant Exxon will restart production following the resolution of a strike in Nigeria.
The eight day strike contributed to near-record high oil prices after the company was forced to almost completely shut down production in Nigeria.
US light, sweet crude was down $2.53 at $110.46 a barrel. In London, Brent crude was $2.22 lower at $109.14.
Last week, oil was trading at almost $120 a barrel in New York.
Oil prices have been falling this week helped by data on Wednesday that showed US crude oil inventories had increased significantly.
The strike in Nigeria stopped virtually all of Exxon’s daily oil production there of 800,000 barrels per day.
“We have agreed to go back to work and we signed an agreement this afternoon,” said Olusola George Olumoroti, head of the union involved in the dispute.
He said Exxon had agreed to improve pensions and pipeline safety, and reduce the expatriate and casual labour it employs.
Discussion on the issue of pay is expected to resume once production has restarted.
