Tuesday June 30, 10:13 AM
Oil pushes past $72 on Nigerian unrest
SINGAPORE (AFP) - Oil prices rose above 72 dollars in Asian trade Tuesday as tensions in Nigeria, a key African crude producer, rattled investor sentiment, analysts said.
New York's main contract, light sweet crude for August delivery, put on 1.22 dollars to 72.71 dollars.
Brent North Sea crude for August delivery leaped 1.43 dollars to 72.42.
Nigerian rebels said Monday they raided a Shell (LSE: RDSB.L - news) facility and killed at least 20 soldiers in a gun battle, a claim denied by security forces.
A Shell spokesman, however, confirmed the raid and said production had been affected.
"Oil markets have continued to monitor developments in Nigeria... Worries about Nigerian supply were supportive for the oil price," analysts from the Commonwealth Bank of Australia said.
The Movement for the Emancipation of the Niger Delta (MEND) militants said the Shell Forcados off-shore platform in Delta state was burning "after a massive explosion" following their early morning attack.
Monday's raid was just the latest in a series that have targeted Shell facilities this month and which have continued despite last Thursday's offer from President Umaru Yar'Adua of an amnesty for the militants.
Nigeria, formerly Africa's biggest crude producer, has seen its oil production affected by militants who claim they are fighting for a fairer share of oil wealth for impoverished communities in the Niger Delta.
The African country now produces about 1.8 million barrels of oil a day compared with 2.6 million in 2006.
Oil prices have steadily gained ground in recent weeks on hopes of a global economic recovery and persistent weakness in the US dollar which makes dollar-priced crude cheaper for holders of foreign currencies.
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