24 March 2006, 15:06  Oil held near $64 on Friday

Oil held near $64 on Friday, after hitting the highest mark in almost seven weeks, on renewed supply worries in Nigeria and expectations that the United States will see thinning stocks as it heads into maintenance season. U.S. light crude for May delivery shed 11 cents at $63.80 a barrel, clinging on to most of its $2.14, or 3.5 percent, gains on Thursday. It hit a peak of $64.33 on Friday, the highest level since Feb. 7. London Brent crude was down 10 cents at $63.17 after a surge of $1.76 the previous day. "A force majeure declaration by Eni on its Nigerian crude exports, strong technical support and some delayed reaction to yesterday's U.S. stocks data all pushed prices in the same direction," said David Thurtell of Commonwealth Bank of Australia in Sydney. Italian energy firm Eni said it could not honour crude oil export commitments from its Nigerian Brass River terminal, which loads around 200,000 barrels per day (bpd), after a pipeline attack last week. The pipeline blast shut in 75,000 bpd of Eni's Nigerian production, but the company said on Thursday that if all went well, it could be repaired within a week. Exports from Nigeria, a member of the Organization of the Petroleum Exporting Countries and Africa's largest producer, have been cut back by attacks on oil installations there. Royal Dutch Shell and other companies already have shut down 630,000 bpd of production, 26 percent of the capacity in the world's eighth-largest crude exporter.

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