* Oil price settles at six-month high
* Nigeria militants say blow up two oil, gas pipelines
* Fuel production cut after Sunoco refinery fire
* Dollar weakens; European, U.S. stock markets rise
(Updates with storm forecast information, paragraphs 10, 11)
By Richard Valdmanis
NEW YORK, May 18 (Reuters) - Oil prices rose nearly 4.8
percent to a six-month high on Monday as violence in Africa's
top crude exporter Nigeria and a fire at a key U.S. East Coast
refinery revived concern about supplies.
U.S. crude <CLc1> for June rose $2.69 to $59.03 a barrel,
the highest settlement since Nov. 11. London Brent <LCOc1> for
July rose $2.49 to $58.47.
The gains came after Nigerian militants said they had blown
up two oil and gas pipelines in the Niger Delta and would
blockade waterways in the region in an effort to disrupt energy
exports from the OPEC country. []
"Crude has been bolstered by the unrest occurring in
Nigeria, where militants have declared an all-out war on the
oil industry," Addison Armstrong, analyst at Tradition Energy
in Stamford, Connecticut, said in a research note.
In the United States, an explosion rocked Sunoco's oil
refinery in Marcus Hook, Pennsylvania, setting a fire and
disrupting production from the 178,000-barrel-per-day plant
heading into the peak summer driving season. []
"The Nigerian stories probably would not have much of an
impact on their own, but combined with the refinery glitches
are contributing to a positive start to the week," said Tony
Machacek, a broker at Bache Commodities.
The refinery fire pushed U.S. gasoline futures <RBc1> to a
seven-month high over $1.76 a gallon.
Analysts added that a weaker U.S. dollar and gains in
equity markets were boosting oil's gains.
U.S. stocks rose about 3 percent as a better-than-expected
quarterly profit and upbeat outlook from Lowe's Cos Inc
<LOW.N>, the No. 2 U.S. home improvement retailer, fueled hopes
the economic slump was easing and spending was stabilizing.
[]
Adding support, weather forecasters said a strong rain
storm off the east coast of Florida had the potential to
develop into the first named storm of the 2009 Atlantic
hurricane season. []
Powerful tropical storms and hurricanes can disrupt
operations at offshore oil platforms and coastal refineries.
OPEC MEETING LOOMS
Oil has risen from a near five-year low of $32.40 reached
in December as the market has tracked a rally in equities
underpinned by hopes of an economic recovery.
Supply curbs by OPEC have also bolstered prices. The group,
which has agreed to cut 4.2 million barrels per day (bpd) of
output since September, meets on May 28 to revisit policy.
So far, comments from ministers from the Organization of
the Petroleum Exporting Countries suggest the group is unlikely
to reduce supply further. But prices are still lower than some
in the group would like.
Iranian President Mahmoud Ahmadinejad said on Monday that
OPEC's second largest oil exporter considered an oil price of
$80 to $90 barrel as "suitable," the semi-official Mehr news
agency reported.
The June U.S. crude contract expires Tuesday and dealers
said trading may be more volatile than usual as a result.
(Additional reporting by Fayen Wong in Perth; Editing by David
Gregorio)
