World oil prices rebounded slightly on Wednesday as supply concerns quickly resurfaced, dealers said, and after heavy falls on Tuesday, when light sweet crude lost more than two dollars in New York.
Brent North Sea crude for July delivery rose 28 cents to 68.41 dollars a barrel in electronic trading. It had shed 1.58 dollars on Tuesday.
New York's main oil futures contract, light sweet crude for delivery in July, climbed 54 cents to 63.69 dollars a barrel in electronic deals before the official open of the US market. On Tuesday the contract dived 2.05 dollars.
“Crude futures were higher (Wednesday) ... recovering from losses in the previous session and following another cut in crude supplies from Nigeria,”Sucden analyst Michael Davies said.
Energy giant Royal Dutch Shell reportedly announced on Wednesday that it had had to cut output by 150,000 barrels a day at its Bonny Light terminal in Nigeria after villagers sabotaged pipelines.
Crude oil prices had fallen Tuesday as supply concerns in Nigeria, the world's sixth biggest producer of crude, had temporarily eased following news that unions in the country had suspended a two-day strike.
“However, despite this bearish news the market remains well supported by the threat of further militant attacks on oil facilities in the region, which have already shut in around 25 percent of the country's oil output,” Davies added.
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