Nigeria unrest pushes oil prices up

An oil terminal in southern Nigeria's Niger Delta. World oil prices reached ten-month high points after armed militants kidnapped five foreigners in southern Nigeria.

LONDON, July 4--World crude prices reached fresh ten-month high points on Wednesday as oil-rich Nigeria was hit by fresh unrest and the market prepared for further key US energy data, traders said.

In London, the price of Brent crude hit 73.12 dollars per barrel, the highest level since August 25, 2006.

New York crude jumped to 71.50 dollars, also a 10-month peak.

Later on Wednesday, Brent North Sea crude for August delivery stood at 72.98 dollars per barrel in electronic deals, up five cents on Tuesday's close.

New York's main oil futures contract, light sweet crude for delivery in August, dipped one cent to 71.40 dollars.

The market tracked news out of Nigeria, where armed men kidnapped five foreigners at dawn on Wednesday, police said.

Wednesday's incident, which was not immediately claimed, came after southern Nigeria's most prominent armed group, the Movement for the Emancipation of the Niger Delta (MEND), announced the end of a month-long suspension of attacks on oil installations, called to allow talks with the new government.

"Nigeria has remained in the focus of investors' attention for some time this year, as the country's oil output struggles to get back to full capacity because of continued militant attacks and kidnappings," Sucden analyst Andrey Kryuchenkov said.

Nigeria is Africa's biggest producer and the world's eighth largest exporter of crude oil, accounting for a daily output of 2.14 million barrels.

The west African country used to export 2.6 million barrels per day until the unrest in the restive Niger delta cut back its production by around a quarter.