Oil climbs further above US$68 on Nigeria

LONDON – Oil climbed further above US$68 (N$476) a barrel yesterday as traders eyed the possibility of more disruptions to Nigerian oil output after election results, which were condemned by international observers.

Prices also drew support from concerns of tight petrol supplies in top consumer the United States ahead of the summer driving season when demand peaks. London Brent crude, currently seen as more representative of global oil prices than US crude, rose 35 cents to US$68,50 at 1409 GMT, after jumping US$1,66 on Monday.US crude was up 33 cents at US$66,22.Nigeria’s ruling party’s candidate Umaru Yar’ Adua was declared the winner of the presidential poll, but observers and opposition groups said the result was manipulated through violence and rigging.Analysts raised concerns over the potential for more violence against the oil industry, which has already curbed about 20 per cent of the Opec nation’s total output.”The fear of renewed supply disruption is prompting traders to buy first and ask questions later,” said Olivier Jakob of Swiss-based oil consultancy Petromatrix.Technical problems at US refineries and the anticipation of further declines in petrol stocks also supported prices.”Tight fundamental conditions, both in Europe and the US, are making markets highly sensitive to any supply-side risk,” said Kevin Norrish of Barclays Capital.Full production at BP’s 420 000 barrels per day Whiting, Indiana, refinery may not resume for months.Output has been cut to about 200 000 bpd for operational reasons, the company said in a statement yesterday.US petrol inventories are expected to draw by a small amount – the 11th week that stocks have fallen – in data due on Wednesday, a preliminary Reuters poll of industry analysts showed on Monday.The dispute between Iran and the West over its nuclear programme also propped oil.Iran’s president told Reuters on Monday the Opec producer would not halt its atomic activities under any circumstances.Nampa-ReutersLondon Brent crude, currently seen as more representative of global oil prices than US crude, rose 35 cents to US$68,50 at 1409 GMT, after jumping US$1,66 on Monday.US crude was up 33 cents at US$66,22.Nigeria’s ruling party’s candidate Umaru Yar’ Adua was declared the winner of the presidential poll, but observers and opposition groups said the result was manipulated through violence and rigging.Analysts raised concerns over the potential for more violence against the oil industry, which has already curbed about 20 per cent of the Opec nation’s total output.”The fear of renewed supply disruption is prompting traders to buy first and ask questions later,” said Olivier Jakob of Swiss-based oil consultancy Petromatrix.Technical problems at US refineries and the anticipation of further declines in petrol stocks also supported prices.”Tight fundamental conditions, both in Europe and the US, are making markets highly sensitive to any supply-side risk,” said Kevin Norrish of Barclays Capital.Full production at BP’s 420 000 barrels per day Whiting, Indiana, refinery may not resume for months.Output has been cut to about 200 000 bpd for operational reasons, the company said in a statement yesterday.US petrol inventories are expected to draw by a small amount – the 11th week that stocks have fallen – in data due on Wednesday, a preliminary Reuters poll of industry analysts showed on Monday.The dispute between Iran and the West over its nuclear programme also propped oil.Iran’s president told Reuters on Monday the Opec producer would not halt its atomic activities under any circumstances.Nampa-Reuters