Oil Rises on Supply Fears

Oil markets rose this morning on worries of supply disruption from Nigeria, while positive demand about Spain and Italy’s debt sales eased eurozone debt woes.

A national strike paralyzed much of Nigeria on Monday, with more than 10,000 demonstrators swarming its commercial capital to protest soaring fuel prices and decades of government corruption in the oil-rich country.

At least one person was killed in the unrest in Lagos, and a large mob of people pushed the body in a wheelbarrow down the street. And in the northern city of Kano, another two died and at least 31 people were wounded when security officers used tear gas and fired at crowds protesting the fuel price hikes.

Talks between one of Nigeria’s main train unions are ongoing over the government’s removal of fuel subsidies, but strikes will continue until an agreement has been reached, reports Reuters.

Brent crude rose by 87¢ to stand at $112.13 a barrel, while US crude gained 98¢ to $100.08; however, a report about a proposed EU embargo on imports of Iranian crude to be implemented over six months capped gains.

The US also imposed sanctions on China’s state-run Zhuhai Zhenrong Corporation, which supplies refined petroleum products to Iran.