The United Nations (UN) has called for a review of the country's fuel supply management in Nigeria after an oil pipeline explosion killed at least 260 this Tuesday in Lagos, the commercial capital of the West African nation.

The explosion is believed to have started as locals in Abule Egba, a district of Lagos, siphoned oil from the pipeline after a gang of insurgents punctured Nigerian National Petroleum Corporation (NNPC) pipelines.

A spokesman for UN Secretary-General Kofi Annan, who issued the call for a thorough national review, said that, "the theft of fuel from Nigerian pipelines has become a frequent occurrence, often with tragic consequences.'

Initial reports stated that a second pipeline had exploded, however a Nigerian Red Cross official on Thursday insisted that the statement was false, according to the Associated Press.

Earlier this year, 150 people died in a similar explosion in Lagos. Over 1,000 people died in a pipeline fire in Nigeria in October 1998.

The explosions have also had an effect on global oil prices.

We don't think a lot about Nigeria being a large supplier to the US but it does have an impact, said Phil Flynn, an oil analyst at Alaron Trading Corp. However he added that the ongoing problems have added a least a dollar to the price of oil if not more.

Nigeria Explosion