Reuters reported that Nigeria's President Mr Goodluck Jonathan and labor unions failed in overnight talks to reach a compromise over the removal of fuel subsidies that has raised fears of a shutdown of Nigeria's oil industry.

Mr Jonathan was expected to make a public address on January 16th 2012 and unions declined to comment until he had spoken.

Unions said that nationwide strikes and protests would resume on January 16th 2012 if no agreement was reached in Africa's second largest economy and number one crude producer.

Oil unions have said that they will shut oil output if talks reach deadlock, Nigeria accounts for 8% of US oil imports and are also a key source for Europe and Asia.

But labor sources say that if another round is planned the unions are likely to keep oil flowing.

According to traders and analysts, global oil prices were boosted by Nigeria supply fears late last week and a serious production outage would push them sharply higher.

Tens of thousands took to the streets for strikes over five successive days last week in protest against the sudden removal of a fuel subsidy on January 1st 2012 that more than doubled the pump price of petrol to NGN 150 per liter from NGN 65.

According to the International Red Cross, several people were killed in clashes with police last week and 600 were treated for wounds.

The government and unions had a first round of talks on January 12th 2012 and a second round two days later with both sides saying progress was being made but that more deliberations were needed.

Unions said they wanted the government to immediately bring the petrol price back down to NGN 65, at which point they would cancel strikes and protests and talks could continue.

(Sourced from www.reuters.com)