Oil prices mixed amid supply fears

Published January 19, 2006

LONDON, Jan 18: Oil prices were mixed on Wednesday, after nearing four-month peaks on heightened worries over crude supplies in Nigeria and Iran, dealers said.

New York’s main contract, light sweet crude for delivery in February, gained 19 cents to $66.50 per barrel in pit trading, after earlier striking $66.93 — the highest level since September 22.

The contract had jumped $2.39 on Tuesday to close at $66.31, the best finish since September 29.

In London on Wednesday, the price of Brent North Sea crude for March delivery eased 24 cents to $64.66 per barrel in electronic dealing. It earlier hit $65.52, last seen September 22.

Dealers said that rising concerns about supply threats in Nigeria, where separatists have called on oil companies to leave the key delta region, and in Iran, facing possible UN sanctions over its nuclear programme, had supported prices.

New York crude futures are over $4 away from historic high of $70.85 per barrel, reached on August 30, 2005 after Hurricane Katrina devastated US Gulf Coast energy installations.

London’s Brent contract is over $3 away from its record of $68.89, set the same day.

“Crude futures were higher on Wednesday as Nigerian militants said they have attacked more oil facilities and plan to attack even more,” analysts at the Sucden brokerage said.—AFP

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