London: Oil prices rose on 11 May after the International Energy Agency warned of tighter supplies ahead and current unrest in Nigeria, the world’s sixth-biggest crude exporter, traders said.
In London, the price of Brent North Sea crude for June delivery won 60 cents to $66.39 a barrel in electronic trading.
New York’s main oil futures contract, light sweet crude for delivery in June, added 34 cents to $62.15 per barrel in electronic deals before the open of the US market.
The Paris-based International Energy Agency today said that global oil demand would dip slightly in 2007 but cautioned that oil and petrol markets could tighten, leading to further price rises.
In its latest monthly report, the IEA focused on political unrest in Nigeria, falls in global energy stockpiles and strains in the refining sector.
The agency reduced its forecast figure for global demand for oil in 2007 by 0.1 million barrels per day from its estimate in April, to 85.7 million barrels because of mild weather in the northern hemisphere and a slightly lower forecast for demand in China.
But it warned: “With average (petrol) retail prices in the US near record highs at just over three dollars per gallon several weeks ahead of the start to the summer driving season, concerns over supplies are being raised.”
The influential energy watchdog stressed that “underlying worries about product availability in the summer are concerns that geopolitics could threaten crude supplies, mostly in Nigeria.”