Refinery and pipeline shutdowns in Britain could mean even higher fuel costs.

A strike at Scotland's Grangemouth oil refinery over the weekend, in addition to BP shutting down its Forties pipeline system, which is powered by Grangemouth, has limited the nation's supply of oil, the London Times reported.

Seven tankers carried 65,000 tons of fuel from Sweden and the Netherlands to Scotland to maintain fuel supplies during the strike at Grangemouth -- it's expected to last about 10 days. Production stopped around 6 a.m. Saturday at Scotland's only oil refinery and the third biggest in Britain.

The Forties pipeline carries about 30 percent of Britain's daily oil output from more than 70 oil fields in the North Sea, and the strike could cost Britain up to $100 million per day in lost revenue. Some reports suggested energy prices could go up by as much as 20 percent before it's over.

Despite predictions of panic-buying at the pumps, there has been little evidence of fuel shortages so far. By Sunday night, about five gas stations ran out of stock, out of 956 stations in Scotland, according to Alex Salmond, the Scottish first minister.

The strike was called after the Unite union and Ineos, the plant's owners, failed to settle on a salary pension scheme for new staff.

Kenya could see fuel reserves

Kenya could become the next nation with a fuel reserve.

Energy Minister Kiaitu Murungi said a strategic petroleum reserve will be stocked to ensure a constant supply amid heightened geopolitical tensions, shrinking supply and rising prices, the Daily Nation reported.

In a Kenya Gazette notice, Murungi said the reserve stock would also rein in runaway petroleum prices and cushion the country from supply disruptions, both locally and internationally. China recently announced plans to expand its strategic reserves, just as the United States did last year at this time.

"It will ensure constant supply of the product and stabilize domestic prices of petroleum products," Murungi said.

Unleaded premium fuel is now the highest it has been in the country's history, and the high cost of fuel has been blamed for the rising cost of basic commodities like rice.

Murungi said the strategic stocks would be procured by the National Oil Corp. of Kenya and stored by the Kenya Pipeline Co. Ltd. The initial quantity of fuel in the strategic stock shall be equivalent to 30 days of consumption and will be funded from money appropriated by Parliament in the fiscal 2909 budget.

"Procurement of additional stock, up to the optimal level of 90 days of consumption, shall be funded by monies to be appropriated by Parliament in subsequent financial years," Murungi said.

Nigeria unrest keeps prices high

Attacks on a Shell refinery in Nigeria are keeping oil prices high.

The Movement for the Emancipation of the Niger Delta crippled the crude oil pipeline at Kula River operated by Shell Petroleum Development Co. last week, almost immediately pushing up crude oil prices worldwide, RTT News reported.

MEND has warned it will not stop the attacks until its leader is released. The group had earlier attacked the Adamakiri and Soku pipelines in Abonnema and warned oil companies not to embark on repairs on the damaged pipelines or they would be creating more places for them to test their explosives.

"On Thursday, April 24, 2008, at 2218 hours, heavily armed fighters from MEND provided cover for its detonation engineers who successfully sabotaged a major crude oil pipeline located at Kula River in Rivers State of Nigeria, operated by Shell Petroleum Development Company," said a statement from the militant group.

"MEND uses this opportunity to thank its numerous sympathizers in the military, oil industry and oil producing communities for facilitating the success of the ongoing Operation Cyclone (the crippling of the entire Nigerian oil export industry)."

If confirmed by the Shell group, last week's bombing of the oil pipeline would be the fourth of its kind in the past week.

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Closing oil prices, Apr. 28, 3 p.m. London

Brent crude oil: $117.06

West Texas Intermediate crude oil: $119.03

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(e-mail: energy@upi.com)