World oil prices fell on Friday, but losses were limited by strong demand, tight supplies and geopolitical tensions, analysts said.
Traders were monitoring the latest developments in Nigeria, the biggest oil producer in Africa, where three Filipino oil and gas workers were abducted on Friday.
New York’s main contract, light sweet crude for delivery in September, closed down 70 cents at $74,76 per barrel.
In London, Brent North Sea crude for September delivery settled down 39 cents at $76,17 per barrel.
”All we really see across the board is a little pullback from a very strong increase over the last week,” said Carl Calabro, an analyst at PFC Energy.
London oil prices have receded from more than $77 and New York prices from more than $76 earlier in the week, but still remain near historical highs.
However, traders said a report on the United States job market lent prices some relief on Friday as the government revealed hiring slowed considerably in July in line with other indicators that have also suggested cooling growth of late.
And when the world’s largest economy slows, it has a big knock-on effect on global oil consumption.
Calabro said hopes were also mounting on Friday that a resolution might be brought to bear on the Israeli-Lebanese conflict, despite ongoing fierce fighting in the region.
”The Lebanese situation shows that hopefully someone will get their act together and establish a ceasefire, and hopefully it will help cool the things down in that region,” Calabro said.
Traders said prices have been supported by fears that the conflict could widen and might even cause Iran, a key Organisation of the Petroleum Exporting Countries member, to blockade some oil exports.
Meanwhile, three Filipino energy workers were abducted in Nigeria a day after a German national had been kidnapped also in the Niger Delta region.
Since January, attacks on oil facilities and personnel by separatist militants and communities have risen in the Niger Delta region, cutting oil exports by one-quarter from Nigeria, which is the world’s sixth-biggest oil exporter.
”The [three] men were abducted at Bonny Island in Rivers state, near the Nigeria Liquefied Natural Gas [NLNG] plant,” NLNG spokesperson Igwebuike Mbanefo said.
”They are our contractors and employees of Baker Overseas Technology Services,” he added.
Another factor identified behind the fall in oil prices on Friday was easing concerns over the threat of hurricanes hitting the US Gulf Coast, traders said. — Sapa-AFP