* Nigerian militants say attack Shell oil platform
* IEA cuts sharply medium-term forecast of oil demand
* EIA revises U.S. April oil demand higher
(Corrects to a crude drop forecast in last graph)
(Updates prices, adds Qatari Energy minister comment, EIA
inventory poll)
By Edward McAllister
NEW YORK, June 29 (Reuters) - Oil prices rose nearly 4
percent on Monday, lifted by word of fresh rebel attacks on oil
installations in Nigeria and gains in equity markets.
Nigeria's main militant group said its fighters had
attacked an oil facility belonging to Royal Dutch Shell
<RDSa.L> in the Niger Delta on Monday, days after President
Umaru Yar'Adua proposed an amnesty. []
U.S. crude <CLc1> rose $2.60 to $71.76 a barrel by 1:18 EDT
(1718 GMT). London Brent crude <LCOc1> rose $2.33 to $71.25.
Further support came as U.S. stocks opened higher on signs
of life in the global economy, which kept investors optimistic
over the prospect of a recovery. []
"Equities are a little bit stronger and that has been
helping the market," said Peter Beutel, president of Cameron
Hanover in New Canaan, Connecticut, adding that buying by funds
had been strong.
"Anytime that we see the Dow Jones higher, the funds take
that as a sign that the economy is going to strengthen and that
oil demand will strengthen along with that," he added.
Signs of a turnaround in the global economy have helped
lift crude prices up from below $40 a barrel in February. The
economic crisis has battered global fuel demand, knocking crude
off record highs set above $147 a barrel last year.
The U.S. Energy Information Administration revised up April
U.S. oil demand by 1.18 percent from its early estimate of
18.255 million barrels per day, suggesting a potential
turnaround in the U.S. economy. []
The EIA revision came after a bullish International Energy
Agency mid-term oil demand forecast on Monday, which said that
there was a chance of an extended contraction and that the
threat of a supply crunch had only receded, not gone away.
[]
Based on a higher economic growth scenario, the IEA
predicted on Monday product demand would grow by 0.6 percent,
or 540,000 bpd on average, between 2008 and 2014, taking demand
from 85.8 million bpd to 89 million bpd.
Number 2 oil consumer China unexpectedly increased gasoline
and diesel prices on Monday by nearly 9 percent and 10 percent
respectively. []
NIGERIA
Crude was bolstered by militant activity in Nigeria as
fighters forced production outages in the West African
country.
The Movement for the Emancipation of the Niger Delta (MEND)
said its fighters struck the Shell Forcados platform in the
Delta state at about 0230 GMT. []
There was no immediate independent confirmation but Shell
said it shut in some oil production at its western operations
in the Delta while it investigated reports of attacks.
[]
"The Nigerian situation is the main factor in the market,"
said Mike Wittner, global head of oil research at Societe
Generale. "The attacks appear to be removing some oil
production capacity from the market."
On Friday, four militant Nigerian factions said they would
accept in principle an amnesty offer from President Umaru
Yar'Adua, raising hopes Africa's top oil producer would halt a
battle with rebels. []
Pipeline bombings, attacks on oil and gas installations and
kidnapping of industry workers over the past three years have
prevented Nigeria from pumping much above two-thirds of its
installed oil output capacity of 3 million barrels per day
(bpd).
EXISTING OPEC CUTS ENOUGH
Qatar's oil minister Abdullah al Attiyah said on Monday
that he does not see any need for OPEC to increase output when
it meets in September. [] OPEC has already targeted
cutting 4.2 million barrels from September levels to help
support prices.
Algerian Energy and Mines Minister Chakib Khelil said on
Monday that an increase in OPEC oil production was hard to
envisage, despite rising crude prices. []
Oil analysts say OPEC can help tighten the oil market
significantly later this year if it continues to implement
production cuts. Iran's oil minister said on Monday that it was
producing in line with its OPEC output target. []
The market awaits U.S. oil inventory data to be released on
Wednesday by the Energy Information Administration. Analysts expect
a 1.6-million-barrel drop in crude stocks, a 1.5-million-barrel
build in distillate stocks and a 2-million-barrel rise in gasoline
stocks, according to a preliminary Reuters poll. []
(Additional reporting by Matthew Robinson, Gene Ramos and Robert
Gibbons in New York and Christopher Johnson in London)
