Crude oil rose in London, adding to Thursday's 6.1 percent gain, as war in Iraq and civil strife in Nigeria limits shipments from the two OPEC members that provided 15 percent of US oil imports in January.
Defense Secretary Donald Rumsfeld said yesterday the war in Iraq may grow increasingly perilous and the US can't predict how long the conflict will last. Producers such as Royal Dutch/Shell Group shut fields that pumped 37 percent of Nigeria's output for an 11th day, adding to concern about shortfalls with commercial US oil stockpiles close to a 28-year low.
"Nigeria's just added to the uncertainty about the war in Iraq," said Chris Mennis, owner of New Wave Energy, a trader of oil swaps and oil products in Aptos, California. "US inventories are still at historic lows. That's why the market is back above US$30."
Brent crude oil for May settlement rose as much as US$0.53, or 2 percent, to US$27.35 a barrel in electronic trading on London's International Petroleum Exchange at 12:40pm Singapore time.
In New York, Crude-oil for May delivery rose as much as US$0.47, or 1.6 percent, to US$30.84 a barrel in after-hours electronic trading on the New York Mercantile Exchange. That's the highest since US$30.60 a barrel on March 20 when the war in Iraq began. Oil traded at US$30.74 a barrel at 2:03pm Singapore time.
On Thursday, oil rose US$1.74, or 6.1 percent, to US$30.37 in regular floor trading, its second successive daily rise. Oil, up as much as 15 percent this week, is moving toward its biggest weekly gain since October 2000. Prices reached a 12-year high of US$39.99 a barrel on Feb. 27 on concern that export halts from Iraq would help send US inventories tumbling.
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