PARIS (AFP) — Oil prices were firmer in European electronic trade on Monday after news of more violence in key African exporter Nigeria, but volumes were limited due to public holidays in London and New York, dealers said.
In early afternoon trade, New York's benchmark West Texas Intermediate crude for July delivery was up 1.05 dollars at 133.24 dollars per barrel.
Brent crude, the London benchmark, for July was up 1.13 dollars at 132.70 dollars.
Dealers said that in early trading there was little to go on but then claims by rebels in the Niger delta to have launched another damaging attack helped push prices higher and back towards the recent record high of 135 dollars.
In Asian trade earlier on Monday, prices had ticked higher as the Memorial Day holiday in the United States marked the start of the traditional summer driving season.
Dealers said the expected increase in demand only added to underlying concerns about supply which have driven oil prices to successive records this year.
On Thursday, Brent struck an all-time high of 135.14 dollars and New York crude reached a record 135.09 dollars before both contracts fell back as investors banked profits.
Mark Pervan, senior commodities strategist at ANZ Bank, said buying ahead of the reopening for floor trading in New York on Tuesday pushed prices higher Monday.
Expectations the dollar will continue to struggle has also made the market more attractive because a weak US currency makes dollar-commodities such as oil cheaper for foreign buyers.
"A lot will depend on the performance of the US dollar. I think trading will be dictated by the currency markets this week," Pervan said.
Copyright © 2009 AFP. All rights reserved. More »
