Oil Prices Rising Again

New York, NY, June 26, 2009--Oil prices rose above $71 a barrel Friday as renewed attacks on oil facilities in Nigeria raised supply concerns and as the dollar slipped further against the euro, drawing investors into commodities.

By midday in Europe, benchmark crude for August delivery was up 91 cents to $71.14 a barrel in electronic trading on the New York Mercantile Exchange. On Thursday, it gained $1.56 to settle at $70.23.

Nigerian militants said they attacked a Royal Dutch Shell wellhead in the southern Delta state in response to a government operation against them, hours after the nation's president offered them amnesty in exchange for laying down their arms.

"One way or another, Nigerian disruptions should lead to an acceleration in the reduction of ... crude oil stock," said Olivier Jakob of Petromatrix in Switzerland.

Oil was also boosted by a drop in the value of the dollar, against which it typically trades inversely. Commodities like oil and gold are used by investors as a hedge against inflation and dollar weakness.