Oil prices jumped more than US$1 a barrel today in response to violent militant action against oil pipelines in the Niger Delta. The attacks led to a 20% cut to Nigeria’s oil production.

A rebel group called the Movement for the Emancipation of the Niger Delta said it attacked an oil-pipeline switching station operated by Royal Dutch Shell, and a navy vessel in southern Nigeria. The group took nine foreign oil workers hostage.

The rebels threatened more violence in a bid to free two ethnic leaders and gain influence over the Niger Delta’s oil wealth.

Shell, Nigeria’s largest foreign producer, suspended output, which would normally reach 455,000 barrels a day.

In London, Brent crude futures rose US$1.46 a barrel to US$61.35

The resulting surge in energy stocks gave the Toronto Stock Exchange a boost. It remained strong at midday. Canada’s biggest producers all made gains, including Suncor Energy (SU.TO:), and Imperial Oil (IMO.TO).