Oil prices creep toward $70

A weaker dollar and supply disruptions in Nigeria drive crude prices up nearly 2.6%.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

What investment strategy will you follow for the rest of the year?
  • Aggressively buying stocks
  • Slowly adding more stocks
  • Beefing up bonds and cash
  • Not changing a thing
Click the chart to view the latest commodity prices.

NEW YORK (Reuters) -- Oil rose nearly 2.6% Tuesday as the dollar weakened and disruptions from OPEC member Nigeria stoked supply concerns.

Light, sweet crude for August delivery rose $1.74, or 2.6%, to settle at $69.24 a barrel in New York. Crude slumped Monday to close at a two-week low.

The U.S. dollar fell against the euro on speculation the Federal Reserve may lower expectations of an interest rate rise when it concludes its meeting Wednesday.

The dollar's losses supported commodities denominated in the greenback, pushing up the benchmark Reuters-Jefferies CRB Index of 19 commodity futures.

"The weaker dollar is supportive and you have the supply disruptions in Nigeria and the turmoil in Iran," said Joseph Arsenio, managing director at Arsenio Capital Management in Larkspur, California.

Italian oil company ENI declared force majeure on shipments of Brass River crude oil from Nigeria.

Persistent militant attacks over the past three years have cut oil output in the OPEC member, the world's eighth biggest crude oil exporter, to less than two thirds of its installed capacity of 3 million barrels per day (bpd).

Royal Dutch Shell (RDS.A) said it was still checking its oil operations in Nigeria's Niger Delta after militants claimed they had launched three attacks against its facilities over the weekend.

Nigerian security forces arrested nine gunmen suspected to be involved in last week's pipeline attack that forced Agip to halt some oil output in the Niger Delta.

Economic optimism has helped lift crude prices from below $40 a barrel in February to above $70 earlier this month.

The chief economist for the International Energy Agency warned that any strong price rise could clip a rebound in the global economy.

Kuwait's oil ministers said OPEC will not cut oil output at its meeting in September, after the producer group last year agreed to a series of output cuts to help lift prices.

"Nobody expected the price to reach $70 a barrel so quickly," Kuwait's Oil Minister Sheikh Ahmad al-Abdullah al-Sabah told reporters at parliament, adding OPEC would likely call for greater compliance with current output targets.

"It was forecast by the fourth quarter. So it slipped a bit but still, if we achieve $75-$80 by the end of the year, that would be fine."

OPEC's president has previously said the cartel wants an oil price of $75 a barrel by the end of the year.

Iranian authorities said they would teach an exemplary lesson to "rioters" held in the worst unrest since the birth of the Islamic Republic and accused Western powers of inciting the violence.

President Barack Obama strongly condemned the OPEC country's crackdown on the anti-government protesters, who have taken to the streets following disputed elections earlier this month.

A revised Reuters poll of analysts ahead of U.S. inventory data forecast crude stocks in the world's top consumer fell by one million barrels last week on lower imports, while gasoline and distillates stocks were seen rising.

Inventory data from the American Petroleum Institute will be released later on Tuesday, with Energy Information Administration data due out on Wednesday. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Copyright 2009 Reuters All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.