June 3, 2006	Saturday	Jumadi-ul-Awwal 6, 1427

LONDON, June 2: World oil prices rose more than a dollar on Friday after the kidnapping of eight Westerners working on an offshore oil rig in Nigeria and on tensions over Iran, analysts said.

Traders absorbed also an announcement by the Organisation of Petroleum Exporting Countries (Opec) that it would maintain oil output at 28 million barrels per day.

New York’s main contract, light sweet crude for delivery in July, jumped $1.51 to $71.85 per barrel in pit trading.

In London, Brent North Sea crude for July delivery surged $1.28 to $70.67 per barrel in electronic deals.

“Prices rebounded in the wake of the hostage-taking on a platform in Nigeria,” Societe Generale analyst Alexandre Kervinio said.

Crude futures meanwhile rose after shedding about $1 on Thursday after data from the US Department of Energy showed a rise in US energy reserves.

Prices were supported Friday also by concerns over Iran, analysts said.

“With Iran continuing to state that its nuclear enrichment programme is ‘non-negotiable’, we have doubts that a solution is within reach and continue to see Iranian issues as a major source of upside risk in oil prices over the rest of the year,” Barclays Capital analyst Kevin Norrish said.

Market watchers say that Iran might cut oil exports in the face of sanctions.—AFP