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Home -> News Center -> Oil
Oil steadies above $116 after sharp rally
in-en.com  2008-5-5 11:59:52  

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PERTH, May 5 (Reuters) - Oil was little changed above $116 a barrel on Monday, pausing after jumping more than 3 percent last week, supported by further supply disruptions in Nigeria and geopolitical tensions between Iran and the West.

U.S. light crude for June delivery CLc1 was down 18 cents at $116.14 a barrel by 2345 GMT.

London Brent crude LCOc1 fell $1.08 to $113.48.

"Prices are still very high, considering the fundamentals and that we are now in a seasonal low in demand. Geopolitics and supply concerns are the key driver," said Gerard Burg, a Melbourne-based analyst at National Australian Bank.

Royal Dutch Shell (RDSa.L: Quote, Profile, Research) was forced to shut more of its production in Nigeria after a militant attack on Saturday on a flowstation in the oil-rich Niger Delta, where local militants have stepped up a campaign of violence.

"A few oil delivery lines are affected and some oil has spilled into the environment," a Shell spokesman said. Recent violence has already knocked 164,000 barrels a day of Shell production in Nigeria [ID:nL03347126].

In the Middle East, Iranian leader Ayatollah Ali Khamenei said on Sunday Tehran would not give up its rights in the face of Western pressure, two days after major powers said they would make a new offer to convince the Islamic Republic to halt its nuclear plans.


 
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