Oil prices fell to nearly $66 in electronic trading Wednesday after traders
collected gains from a recent rally, although analysts said the market continued
to be supported by supply concerns in Iran and Nigeria.
OPEC President Edmund
Daukoru answers questions during a news conference at the African Oil and
Gas and Finance conference in Algiers March 4, 2006.
[Reuters] |
Light, sweet crude for May delivery fell 17 cents to $66.06 a barrel in
electronic trading on the New York Mercantile Exchange. Gasoline futures rose
1.15 cent to $1.9070 a gallon, while heating oil prices rose fractionally to
$1.8570 a gallon. Natural gas fell 4.2 cents to $7.023 per 1,000 cubic feet.
Last week, prices made solid gains on supply concerns linked to U.S. gasoline
inventories, which have been falling ahead of the U.S. summer, when demand
peaks.
The uncertain outlook for supplies out of Iran and Nigeria was bolstering oil
prices, analysts said.
The U.N. Security Council voted unanimously last week to demand that Iran
suspend nuclear enrichment but Iran has remained defiant, saying its enrichment
plans are "irreversible." The standoff has escalated tensions over Iran's
nuclear program.
Iran said Monday it successfully tested its second new torpedo in as many
days, the latest weapon to be unveiled during war games in the Gulf that the
military said are aimed at preparing the country's defenses against the United
States.
Also of concern to the market is Nigeria, where about 27 percent of output
has been knocked out by ethnic rebel attacks in the Niger Delta region.
Militants have pledged more attacks aiming to get locals a bigger cut of the oil
revenues held by the federal government. The country usually produces 2.4
million barrels a day.
Nigeria is the fifth-largest exporter of crude to the United
States.