Oil prices mixed after Nigeria attack

Published December 8, 2006

LONDON, Dec 7: World crude prices travelled in different directions on Thursday after an attack on an oil installation in Nigeria, Africa's biggest producer of crude, and amid forecasts of warmer US weather and before next week's OPEC meeting.

New York’s main contract, light sweet crude for delivery in January, climbed six cents to $62.25 per barrel in pit trading.

In London, Brent North Sea crude for January delivery fell 42 cents to $62.65 in electronic deals.

The market digested news out of Nigeria, where at least one person was killed and four foreigners -- three Italians and one Lebanese -- were kidnapped during an attack Thursday by armed assailants against an oil installation belonging to Italy's Agip.A spokesman for Eni, Agip's Italian parent company, said the attack was at the Brass oilfield in the restive Niger Delta region.

Traders were meanwhile tracking weather reports for the US northeast.

Meteorologists are predicting warmer than average temperatures in the region over the next week which should reduce demand there for heating oil.

The 11-member Opec cartel meets on Dec 14 in Nigeria.

In October, Opec decided to reduce its output quota by 1.2 million barrels a day to stem falling prices, which have dropped from record highs above 78 dollars in July and August.—AFP