ABUJA (Reuters) – President 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, union and presidency sources said Monday.

Jonathan was expected to make a public address later on Monday and unions declined to comment until he had spoken.

Unions said Sunday that nationwide strikes and protests would resume Monday if no agreement was reached in Africa’s second-largest economy and number one crude producer.

Oil unions have said they will shut oil output if talks reach deadlock – Nigeria accounts for 8 percent of U.S. oil imports and is 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.

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