With double trouble brewing in Nigeria, oil prices rose all over again in an unending battle of crisis and peace.
Militant attacks on an Italian oil facility and a leak in a Shell Petroleum Development Co. pipeline has caused a singnificant drop in crude oil production leading to mounting prices.
On the New York Mercantile Exchange prices for light, sweet crude rose to $74.59 a barrel while gasoline, natural gas and heating oil futures also saw a upward swing.
The Niger Delta has seen many disputes over the years between oil companies and communities demanding a larger share of the wealth reaped by Africa's largest crude producer.
Traders have also been keeping an eye on the Israel-Lebanon conflict. Oil prices had hit a high 2 days after the fighting broke out but seemed to settle with hopes of the violence remaining contained. Since then, the conflict has escalated with Israel suffering its heaviest losses today and retaliating with jet pounding. Al-Qaida has also jumped into the fray threatening to attack Israel.
If a regional war breaks out and supplies from Iran are disrupted, prices could well sky rocket further.
Adding to this, the U.S. Energy Department said that the demand for gasoline had increased since the previous year by 2 percent despite the heavy pricing.
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