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NEW YORK - Oil rose above US$59 a barrel on Friday after the United States warned that a militant group may soon attack Nigeria's oil facilities.
Adding to concerns, BP said it received a bomb threat at its refinery in Whiting, Indiana, the fifth-largest refinery in the United
states.
"The news of the bomb threat combined with earlier concern on Nigerian output," said Jim Ritterbusch, president of Ritterbusch & Associates.
US light crude CLc1 was up US$1.17 at US$59.05 a barrel at 1927 GMT, after falling 83 cents on Thursday. London Brent crude LCOc1 was up US$1.28 to US$59.15.
The US consulate in the Nigerian city of Lagos said in a release Friday that a militant Niger Delta group may have finalized plans for a concerted attack against oil facilities in the Niger Delta region.
"The attacks allegedly will be carried out sometime during the first week of November and will include 10 to 20 simultaneous bombings of land-based targets and a series of separate attacks on oil installations in which expatriate workers will be taken hostage," according to the statement.
Militant attacks have cut output by about 500,000 barrels per day since February from the world's eighth-largest exporter, but many threats are not carried out.
The US consulate said on Oct. 4 that militants may target the major oil and gas export hub of Bonny Island, but to date no attack has materialized.
Oil is down about US$20 from its mid-July peak of US$78.40 and is hovering near the bottom of a range of US$57-US$62 that has held since early October.
Ample US fuel stocks and doubt over Opec's resolve in cutting supply are keeping prices under pressure.
Stocks of crude, distillates and petrol are still above last year's levels as the world's largest energy consumer heads into peak winter demand.
"Without cold weather, energy demand is likely to be lower and so crude oil, and later refined product, inventories are likely to remain comfortable," said Tobin Gorey of the Commonwealth Bank of Australia.
Traders are waiting to see if Opec producers will adhere to an agreement to cut by 1.2 million bpd starting from November. Consultancy Oil Movements sees Opec exports down only 440,000 bpd in the four weeks to Nov. 18.
"The market remains skeptical that any more than half of the pledged cut will occur, leaving room for the market to be surprised either way," said Gorey.
Saudi Arabia and the United Arab Emirates have told their customers they will get less crude this month, but most other producers have yet to commit. Trade sources said on Thursday Algeria had cut November oil supply in line with its pledge.
Supply from non-Opec producer Russia also fell for the second month in a row in October, to 9.71 million bpd, government data showed on Thursday.
- REUTERS
