Terror attacks contributing to climb in oil prices

The Royal Bank of Canada says sabotage to key pipelines in oil-rich north Africa has affected daily supply.

Barrels of crude oil. Picture: Freeimages.

JOHANNESBURG - Increased terror attacks are apparently contributing to a climb in oil prices.

Brent crude dropped to just above $26 a barrel last month but has since climbed to around $40 a barrel.

A freeze in global supply has sent oil prices climbing, with Saudi Arabia and Russia cutting output.

But there is a more sinister factor causing a cut in production.

The Royal Bank of Canada says sabotage to key pipelines in oil-rich north Africa has affected daily supply.

The bank says sabotage has driven global supply outages to elevated levels.

It has cited the bombing of a pipeline in Nigeria, which resulted in 250,000 barrels being removed from daily production.

Oil producers have indicated that they plan to cut production further in the coming months.