LONDON - Tension in leading oil producers Nigeria and Iran drove prices above US$67 a barrel as high stockpiles in the United States failed to calm investor nerves.
US light crude climbed 94 cents to US$67.20 a barrel by 1634 GMT after earlier touching a session high of US$67.80. London
Brent crude gained 71 cents to US$65.63.
"The US inventory data clearly worried the market, but the Iranian and Nigerian situations are providing support to prices," said Tobin Gorey of the Commonwealth Bank of Australia.
Prices hit a four-month peak of US$69.20 for US crude at the beginning of the week, but fell steeply after US inventory data on Thursday showed crude stocks were 11 per cent higher than a year ago.
Top oil exporter Saudi Arabia also sought to soothe consumers, saying it would fill any supply gap and that the Organisation of the Petroleum Exporting Countries would keep pumping nearly flat out.
"There seems to be no reason to reduce, so Opec will continue the way it is right now," Saudi Oil Minister Ali al-Naimi told reporters in New Delhi.
Oil prices have risen in response to fears any outage would quickly erode the ample supply cushion.
A five-week campaign of sabotage and kidnapping by the Movement for the Emancipation of the Niger Delta has led to the shut in of more than 220,000 barrels per day of Nigerian oil.
Nigerian oil minister Edmund Daukoru said the country would not address security in the oil-producing southern delta region until four hostages held by militants were released.
He also predicted fellow Opec producer Iran would be unlikely to halt oil supplies in response to mounting pressure over its nuclear programme, though the market is still concerned about possible disruption of Iran's 2.4 million bpd of exports.
Supplies have also come under pressure in Europe after blasts cut a pipeline supplying gas to Georgia, where temperatures are below freezing.
Interfax news agency said Russia would restart deliveries tomorrow, a week after the explosions.
- REUTERS
