We have heard it all before many times. Militants attack in Nigeria. Oil prices rebound. See MarketWatch article below.
Shell is the leading oil producer in Nigeria. To the outside world it appears to be an unfortunate victim of regular attacks by militants on its employees, pipelines and installations, which drive up the price of oil. The truth is more sinister.
The militant attacks are actually welcome news for Shell because without a regular artificial crimp in the Nigerian supply, oil prices would be on a downward trend. Higher oil prices means multi-billion dollar profits and bigger executive bonuses.
Is Shell just an innocent party fortuitously benefiting from events over which it has no control, or is it possible Shell could be behind the attacks? This would appear on initial consideration to be an outrageous slur but the truth is that Shell has a track record of entering into commercial arrangements with Nigerian militants, including individuals with links to MEND, a group that has claimed responsibility for attacks on Shell. Donâ€™t take my word for it, read this FT article, which confirms information given to us by a Shell Nigeria insider source.