Oil prices moved higher in Asian trade Friday amid the threat of a production shutdown in Nigeria, Africa’s biggest crude producer.
New York’s main contract, West Texas Intermediate crude for delivery in February gained 87 cents to $99.97 in afternoon trade.
Brent North Sea crude for February was up $1.08 at $112.34.
“Geopolitical supply side issues continue to be the key bullish factor affecting oil prices,” said Victor Shum, senior principal at Purvin and Gertz international energy consultants in Singapore.
“Besides Iran, the more immediate concern that could affect supply are the strikes in Nigeria”
Nigerian oil workers vowed Thursday to start shutting down production this weekend as a national strike entered its fifth day.
High level talks between labour leaders and President Goodluck Johnathan made progress towards a deal but were not enough to call off the industrial action.
Both sides are scheduled to meet again on Saturday — with oil workers planning to shut down production at midnight of that day if no resolution is reached.
The unrest started Monday amid protests against the government’s January 1 scrapping of fuel subsidies, which caused petrol prices to more than double, sparking widespread anger.
Nigeria produces more than two million barrels per day and is a key supplier of crude to the United States and European Union.
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