Oil jumps above $72 a barrel

Oil surged above $72 a barrel on Monday to a 10-month high as a general strike loomed in Nigeria and attacks on oil installations cut more supply from the world's eighth largest exporter.
Low US gasoline inventories at a time of peak summer demand also is boosting the market, analysts said, along with a possible oil workers' strike in Brazil next month and Opec's reluctance to boost oil output.
"Gasoline will be supportive all summer," said Mike Wittner of investment bank Calyon. "There's really no bearish factors to pull the market down." London Brent crude for August, seen as more representative of global prices, settled up 71 cents to $72.18 a barrel, the highest level since August 28.
US crude for July settled up $1.09 to $69.09 a barrel, after hitting a nine-month high of $69.15 earlier. Brent climbed as far as $72.25, the highest since August 28, 2006. It has rallied from around $50 in January and analysts say the bull run may have some way to go yet.
Societe Generale said in a report that $70 a barrel "should now become the new short-term floor for Brent." The bank also said crude has potential to reach $75 in July. In Nigeria, gunmen overran an oilfield station on Sunday. Italian oil company Eni said 27 people were being held hostage at the facility, which normally produces about 40,000 barrels per day of oil. US oil company Chevron has cut its Nigerian oil output by 42,000 bpd after an invasion of a flow station by armed youths, a company spokesman said on Monday.
About 756,000 bpd, or 25 percent, of the country's output is shut because of militant attacks. Union leaders said Wednesday's strike would be total and would encompass oil exports. In a further supply threat, Brazil's main oil workers' union may start a five-day strike that would cut output any time after July 5, a union director said on Monday. The supply risks come as world oil demand is growing faster than expected, according to the International Energy Agency, an adviser to 26 industrialised countries.
Last week, the IEA raised its forecast for world oil demand this year and called on the Organisation of the Petroleum Exporting Countries to increase output. Opec insists crude supply is sufficient. The adviser for oil trading at Norway's largest oil company, Statoil, expects crude and gasoline markets to stay tight in future months without more Opec oil. "The level of commercial oil stocks will decline significantly unless Opec increases output," Tor Kartevold said at a briefing.
"Opec's wait-and-see attitude is stressing the market," he said. "This is the recipe for price increases. The longer Opec waits, the more stressed the market becomes." US crude hit a record $78.40 nearly a year ago on fears that fighting between Israel and Lebanese Hezbollah guerrillas could spread to Middle East oil producers.
SINGAPORE: Oil prices edged up on Monday to extend last week's rally as dealers worried about supplies from Nigeria and the Middle East at a time of peak summer gasoline demand in the United States. London Brent crude for August delivery, currently seen as more representative of the global market, rose 23 cents to $71.70 a barrel, after gaining 11 cents on Friday when it hit a 10-month high.
US crude for July steadied at $68.00 after climbing 5 percent last week, while US gasoline futures continued to rise to lead oil market gains after data last week showed stockpiles of the motor fuel in the United States unexpectedly failed to build.