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Oil prices were mixed in Asian trade today after posting solid gains in New York on optimism over the US economy and concerns about supply disruptions in Nigeria.
New York’s main contract West Texas Intermediate for May delivery was up 26 cents at $101.54 a barrel in late afternoon trade, while Brent North Sea crude for May settlement fell five cents to $107.78.
Analysts said prices were supported by robust consumer spending in the US, the world’s biggest economy and user of oil.
The Commerce Department yesterday said the economy grew at an annual rate of 2.6 per cent in the fourth quarter of last year, stronger than the 2.4 per cent previously estimated, as consumer spending picked up.
Singapore’s United Overseas Bank said in a market commentary the data was “adding optimism to the US economy”.
It said there were also “concerns about Nigerian oil supplies being disrupted after Shell announced a major Nigerian pipeline being sabotaged”.
Anglo-Dutch oil giant Shell said it had declared a “force majeure” on crude from Nigeria as it struggles to repair the pipeline.
“Force majeure” is a legal term releasing a company from contractual obligations when faced with circumstances beyond its control.
Nigeria is Africa’s biggest oil producer, accounting for more than two million barrels per day.
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