LONDON (Thomson Financial) - Oil extended Friday's rally on supply jitters
from fresh disruptions in Nigeria and escalating tensions between key oil
producer Iran and the West.
Fresh militant attacks in Nigeria, Africa's biggest producer, have forced
oil major Shell to shut down more of its oil production.
Nigerian militants attacked an oil ship off the coast of the west African
country and took two people hostage, a military spokesman said Sunday. Shell
accounts for about one-half of Nigeria's 2.1 million barrels-per-day output.
"In the next couple of days, oil prices will remain relatively firm," David
Moore, a commodity strategist at the Commonwealth Bank of Australia in Sydney.
"The recent news flow is likely to be supportive of expectations in the oil
markets."
At 9:27 a.m., New York-traded West Texas Intermediate crude for June
delivery was up 82 cents to $117.14 a barrel.
In London, Brent crude for June delivery was up 83 cents at $115.39. Trading
volume in London was light as the United Kingdom enjoys a bank holiday.
Elsewhere, prices were supported by tensions between Iran and the West. Iran
said Monday it will reject any offer that violates its right to the full nuclear
fuel cycle after world powers said they had prepared a new package to end the
atomic crisis. Oil players fear the ongoing tension could result in Iran using
oil as a bargaining chip.
anealla.safdar@thomsonreuters.com
as/kf1
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