Brent oil trading up two percent on US dollar, Nigeria

ICE Brent crude oil futures rose around two percent in trading on Monday, supported by a weaker US dollar and the sabotage of an oil pipeline in Nigeria at the weekend. Brent crude oil futures for March settlement rose as much as $1.41, or 1.9 percent, to $74.52 a barrel on the London based ICE Futures Europe exchange on Tuesday. Brent crude oil was at $73.36 at 1:51 p.m. Singapore time and on Monday Brent contract climbed 2.3 percent, the most since January 4th, to settle at $73.11 dollars per barrel.

“The oil price may be somewhat supported by news that oil company Shell had to close three of its pumping stations in Nigeria during the weekend,” Commerzbank analysts said in a research note.

Oil advanced the most in four weeks on Monday after the US Institute for Supply Management’s factory index climbed to a higher-than-anticipated 58.4 in January. European manufacturing also increased as companies raised output to meet reviving global demand, a separate report showed. Energy Department data tomorrow may show a drop in US distillate fuel inventories.

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