Oil prices rebound

Published November 4, 2006

LONDON, Nov 3: World oil prices jumped on Friday, as the US government warned over possible attacks to oil facilities in Nigeria, which is Africa's biggest producer of crude.

Analysts said prices were also boosted by the latest US employment data, which suggested solid demand for energy ahead.

New York's main contract, light sweet crude for delivery in December, surged 92 cents to $58.80 per barrel in pit trading.

The contract had closed down almost a dollar on Thursday.

In London, Brent North Sea crude for December delivery advanced 83 cents to $58.70 per barrel in electronic trading after shedding more than a dollar on Thursday.

News of the threats in Nigeria “are going to increase the risk premium over the weekend and keep the market on edge”, Alaron Trading analyst Phil Flynn said.

“The US government has learned that as of late October 2006, a militant Niger Delta group may have finalized its plans for a unified attack against oil facilities in the Niger Delta region,” the statement from the US consulate in Nigeria said.

The US labour market displayed fresh signs of vigour in October as the jobless rate fell to a five-year low despite a weaker-than-expected addition of 92,000 jobs, data showed on Friday.

Oil prices had been dampened earlier in the week by signs of slower economic growth in the US, the world's biggest consumer of energy, and forecasts of a warmer northern hemisphere winter that should dampen demand for heating fuel, dealers said.

Crude futures were pressured also by doubts over the Opec cartel's promised production cuts. —AFP

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