Shell confirms production cut in Nigeria

Following attacks by militant group the Movement for the Emancipation of the Niger Delta, Shell was forced to shut down about 130,000 barrels per day of its Nigerian production that flows through its Nembe Creek pipeline, African newspaper This Day reported.

Geopolitical tension and violence are some of the reasons given for high oil prices worldwide.

A Shell spokesman said the company has declared "force majeure" on its July deliveries. "Force majeure" means "a greater force," or some unexpected occurrence that excuses a party from its contractual obligations.

Nigeria's oil production was gradually increasing toward its quota of 2.1 million barrels per day prior to the attacks, and now MEND has promised more violence over the next month.