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World oil prices rebound after Nigeria scare

Analysts say prices were also boosted by the latest US employment data, which suggested solid demand for energy ahead.

india Updated: Nov 04, 2006 06:29 IST

World oil prices jumped after the US government warned of possible attacks on oil facilities in Nigeria, which is Africa's biggest producer of crude.

Analysts said prices were also boosted by the latest US employment data, which suggested solid demand for energy ahead.

New York's main contract, light sweet crude for delivery in December, surged $1.26 to close at $59.14 a barrel on Friday.

December Brent North Sea crude traded in London settled at $59.15, up $1.28 on Thursday.

Both the benchmark contracts had slumped on Thursday on fears of slowing US economic growth. But sharp upward revisions to payroll numbers published on Friday helped prices recover.

The main spur came from a warning from the US embassy in Nigeria that a militant Niger Delta group may have completed plans to launch attacks on oil facilities in the restive region.

"Driving prices were concerns about the Nigerian threat reported by the US embassy," energy analyst James Williams of WTRG Economics said.

"This is happening right before a weekend. You typically get a bigger bounce in prices heading into the weekend, as traders fear that over a weekend only bad things can happen," he said.