Oil Hits $137 Following Nigerian Attack

Shell shut down production at a major offshore oil facility in Nigeria due to a militant attack.

"We shut down production at the Bonga oilfield following an attack by unknown militants this morning," said Shell spokesman Precious Okolobo.

Oil production in the southern Delta region of Nigeria has declined by 25% since January 2006 due to attacks by militant factions.
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Denial Of Market Fundamentals Leads To Speculator Blame Game

Francisco Blanch, head of global commodities research at Merrill Lynch in London, said he found no link between speculative activity and systematic price increases in commodities.

"So far the available data doesn't support the idea that speculators are driving prices up: quite the contrary," Blanch said. "We are in a stage of denial with regards to inflation."

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