Oil falls as Nigeria strike threat recedes

LONDON – Oil prices fell yesterday after the threat of further disruptions to Nigerian supplies receded, but concerns about low gasoline stocks in top consumer the United States underpinned the market.

London Brent crude was down 85 cents at US$68,86 a barrel by 1530 GMT, down from a session high of US$70,24. US crude was US$1,65 lower at US$63,55 a barrel.Prices had already fallen almost a dollar on Monday after Nigerian unions suspended a strike that had threatened to halt oil shipments from the world’s eighth-largest oil exporter.Militant attacks on Nigeria’s oil installations have reduced the Opec member’s output by around a quarter.The country’s new president Umaru Yar’Adua, who took office yesterday, said he would urgently address the crisis in the oil-producting Niger Delta.Oil hit US$71,80 a barrel last Thursday, its highest since August 28 2006, propelled by the Nigerian supply problems and low supplies of US gasoline ahead of the peak holiday driving season, which traditionally starts at the end of May.US crude was US$1,65 lower at US$63,55 a barrel.Prices had already fallen almost a dollar on Monday after Nigerian unions suspended a strike that had threatened to halt oil shipments from the world’s eighth-largest oil exporter.Militant attacks on Nigeria’s oil installations have reduced the Opec member’s output by around a quarter.The country’s new president Umaru Yar’Adua, who took office yesterday, said he would urgently address the crisis in the oil-producting Niger Delta.Oil hit US$71,80 a barrel last Thursday, its highest since August 28 2006, propelled by the Nigerian supply problems and low supplies of US gasoline ahead of the peak holiday driving season, which traditionally starts at the end of May.