Sabotage forces Shell to cut output in Nigeria: company

0 Comments | AFP, July, 2008

LAGOS (AFP) — Anglo-Dutch oil giant Shell cut output in southern Nigeria Monday after militants sabotaged at least one of its pipelines supplying crude, officials said.

Shell declined to say by how much production was being reduced, stressing that the amount should not be exaggerated because of the possible effect on oil prices.

Oil prices had already risen on news of the attack, with Brent North Sea crude for September delivery climbing 1.58 dollars to 126.10 dollars a barrel, while New York's main contract, light sweet crude for September, rose by 1.50 dollars to 124.76 dollars a barrel.

"We have reduced production to avoid further environmental devastation," spokesman Rainer Winzenried told AFP from Shell's headquarters in The Hague.

The duration...