US crude futures dipped on Monday, falling for a sixth day as rising US crude stocks alleviated fears of a shortfall in the world's top energy consumer ahead of the peak summer driving season. US crude for June delivery fell 9 cents to $61.84 a barrel, continuing on Friday's decline, which saw prices fall 2 percent to settle at $61.93 on rising US crude imports.
On Monday's fall in oil prices marks the sixth consecutive session of decline amid rising US crude inventories, a rebound in refinery throughput and easing Iran tensions. But the latest episode of kidnap in Nigeria, the world's eighth-largest oil exporter, could revive fears of further supply disruptions and potentially pose an upside risk to prices.
Gunmen on Saturday kidnapped a Belarussian woman working with Compass Group, bringing the total number of abductions in Africa's top oil producer to 28 in five days. Another 65,000 barrels per day were shut off by two attacks on Tuesday and Thursday, in addition to the 600,000 barrels per day, or one fifth of the total capacity, which have been shut in since February last year due to militant attacks.
Concerns about Nigerian supply had eased last week after Royal Dutch Shell said the Forcados oil export terminal might resume operations in June, more than a year after it was shut by militant attacks.
Shell declined to give a precise date for when production would be restored fully. But industry sources are doubtful that Shell will achieve its June target, as restoring lost output will take several months and may be set back by more violence.
Tensions in Iran appears to be seeing a brief respite as Iran's foreign minister welcomed a Swiss proposal for continued talks on Tehran's disputed nuclear programme, which the West suspects is aimed at making atom bombs, Iranian media reported on Saturday.
The paper did not give details of Foreign Minister Manouchehr Mottaki's views on the Swiss proposal which includes a staged plan leading to a simultaneous suspension of Iran's uranium enrichment work and of UN sanctions.
Concerns of a shortfall in US supplies ahead of peak summer demand had supported prices in recent weeks as refiners struggled with heavy maintenance and unexpected outages. But with crude imports still flowing to US shores, refiners have been able to plump up inventories for when units come out of turnaround.